Sonia Meskin, US economist at Standard Chartered, suggests that for the FOMC, while the number of hikes remaining in this cycle still matters, the Committee appears less concerned about the precise level of rates at which the US economy enters the next downturn than about other potential policy tools. Key Quotes “We believe the dovish FOMC shift occurred in the context of downside risks to growth and a partial shift in its focus from currently still-strong cyclical momentum to the next downturn.” “The Committee was taken aback by the combination of global growth fears and domestic market turmoil in Q4-2018. Continued escalation of these factors could have precipitated an economic downturn. While pressures across markets have abated, the FOMC has clearly shown that it is more worried about the downside than upside risks to the global economy.” “In addition, given that the US economy and investors may be unable or unwilling to tolerate real rates far from the zero lower bound (ZLB) at this late stage of the cycle, the Committee must actively consider other tools for the next downturn. Studies suggest that a relatively frequent encounter with the ZLB is associated with lower inflation expectations and sub-optimal real growth outcomes.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Fed: Dovish surprise delivered – Westpac FX Street 4 years Sonia Meskin, US economist at Standard Chartered, suggests that for the FOMC, while the number of hikes remaining in this cycle still matters, the Committee appears less concerned about the precise level of rates at which the US economy enters the next downturn than about other potential policy tools. Key Quotes "We believe the dovish FOMC shift occurred in the context of downside risks to growth and a partial shift in its focus from currently still-strong cyclical momentum to the next downturn." "The Committee was taken aback by the combination of global growth fears and domestic market turmoil in Q4-2018.… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.