Fed to cut rates on Oct 30 and again in Q1 2020 – Reuters Poll

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The US Federal Reserve (Fed) is expected to cut rates by 25 basis points at its Oct. 29-30 meeting, despite record low unemployment, according to a Reuters poll of economists. 

Key points

The Fed will cut interest rates by 25 basis points to 1.50%-1.75% next week. 

Another rate cut could be seen early next year, following which the central bank will likely stand pat for the rest of the year. 

75% of economists said the recent trade development between Washington and Beijing was not a turning point in easing uncertainty.

A majority of economists, 27 of 45, also said US-China trade relations would stay about the same between now and the end of next year.

The median probability of a US recession in the next 12 months rose to 35% from 30% predicted a month ago.

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