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As widely expected, the Federal Reserve has cut the target rate 25bp to 1.5-1.75% and analysts at ING point out that The key change in the accompanying statement is that the Fed has dropped the sentence saying that the FOMC “will continue to monitor the implications of incoming information for the economic outlook and will…
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See’s it is an important data point and doesn’t think the market has necessarily over reacted is ‘open minded’ about the next Fed rate meeting. ISM is only one number rate cuts are risk management concerned about inflation outlook More to come…
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Minneapolis Fed President Neel Kashkari crossed the wires in the last minutes noting that there are some signs pointing out to slowdown in hiring in the companies in the United States. “I argued for steeper interest rate cuts at the Federal Reserve’s last meeting,” Kashkari added. Kashkari’s dovish stance on the monetary policy is no…
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Analysts at TD Securities are expecting the US Fed to lower rates again by 25bp next week, doubling-down after its first rate cut in over a decade at the July meeting. Key Quotes “We also expect the IOER rate to decline by 25bp, as the effective Fed funds rate (at 2.13%) remains well-below the upper…
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Next week, the FOMC will meet. According to analysts at Wells Fargo, a 25 bps cut to the Fed Funds rate is the most likely outcome, amid low inflation and trade related risks. Key Quotes: “Coming off the first rate cut in a decade, the Federal Reserve Open Markets Committee (FOMC) heads into its…
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Fed’s Clarida is crossing the wires and has said that decisions are taken at one meeting at a time, but has warned of a worsening economic backdrop on the global scale. Key comments US economic data since July has come in pretty well. Not seeing an elevated risk of recession. Treasury yields are driven down…
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In an interview with CNBC, Cleveland Fed President Loretta Mester said that she had not yet made up her mind about how she is going to vote on rates at the next FOMC meeting. Commenting on China’s retaliatory tariffs, Mester said that this was a continuation of the trade uncertainty that has been underway…
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In an interview with Bloomberg TV on Friday, St. Louis Fed President James Bullard argued that the Federal Reserve has to react to the “downdraft in global yields.” “There will be a robust debate about a 50 basis point cut at next Fed policy meeting,” Bullard stated. “The Fed is willing to take all…
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The Wall Street Journal reports the latest comments from the Dallas Federal Reserve (Fed) President Kaplan, as he says that he sees a potential for a Fed rate cut at the September FOMC meeting. The US dollar index paid no heed to Kaplan’s comments and held on to the recovery gains near 98.30, up +0.11%…
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Danske Bank analysts are expecting the US Fed to cut by 25bp at each of the next five meetings taking the target range to 0.75-1.00% at the March meeting. Key Quotes “We do not anticipate the Fed will pre-commit to more easing but that it will stick to its current ad hoc approach. If the…
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Danske Bank analysts note that yesterday Fed officials revealed further their preferences on how to support the US economy. Key Quotes “Jerome Powell told a Paris audience that the Fed is “carefully monitoring” downside risks to U.S. growth and “will act as appropriate to sustain the expansion”, echoing his Congressional testimony.” “Chicago President Charles Evans…