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Tom Kenny, analyst at ANZ, suggests that a 25bp rate cut from the FOMC at its September meeting looks a sure thing, amid escalating trade tensions and further cracks in global growth.

Key Quotes

“We now expect the FOMC to cut by a further 25bps again before year’s end. The risks are for more easing than we anticipate.”

“The Fed’s future monetary policy path remains highly uncertain. Indeed, as Fed Chair Powell indicated at Jackson Hole, there are no precedents to guide policy in response to this challenging geopolitical environment.”