Powell Signals That Rate Cut Could Be Coming Soon

[rainman + 263]

Federal Reserve Chairman Jerome Powell said Wednesday that “many” Fed officials believe a weakening global economy and rising trade tensions have strengthened the case for looser interest-rate policies. Delivering the Fed’s semi-annual monetary report to Congress, Powell sent the strongest signal yet that the central bank is ready to cut interest rates for the first time in a decade, possibly as soon as the July meeting. Powell said that since Fed officials met last month, “uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook.” Meanwhile, inflation has fallen farther from the Fed’s target.
Many investors have put the odds of a rate cut this month at 100%. The Fed’s benchmark rate currently stands in a range of 2.25% to 2.5% after the central bank boosted rates four times last year, moves that brought increasing attacks from President Donald Trump

[pinto + 293]

Why? Because business investment in U.S. has slowed notably as a result of the trade wars.  The hope is that low interest rates will spur the faltering economy. 

[joze44 + 39]

Is he doing it because of the president Trump always talking about rate cuts?

[50 shades of black + 254]

It’s outrageous that the Fed has been politicized in this way. 

[Pavel + 384]

God help the world when the next financial crisis hits. The central banks will have no ammunition to deal with it the next time around.....

[ThunderBlade + 231]

Globally as well as here in the US, inflation is falling, meaning the real rate is going up. Fed. chief  needs to wake up to this fact and cut rates to compensate. But, I'm afraid that this way of rates deceleration is example for possible disaster

[rainman + 263]

The Fed will take us into a recession by succumbing to the pressure to cut rates...

[ronwagn + 6,290]

9 hours ago, pinto said:

Why? Because business investment in U.S. has slowed notably as a result of the trade wars.  The hope is that low interest rates will spur the faltering economy. 

What faltering economy?

[JohnSmithKalk 0]

No doubt the US economy has shown a sluggish movement recently after the trade war. Just after Powell's, announcement Gold climbed sharply on Wednesday settling at the highest since July 3. Commodities such as Gold Stocks, mining stocks, oil stocks are something to keep an eye on.
 

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Dow Jones Ended in Green: Corporate Earnings Need To Be Focused Upon - Source : Kalkine Media

Edited July 11, 2019 by JohnSmithKalk

[BigJets + 87]

 

21 hours ago, 50 shades of black said:

It’s outrageous that the Fed has been politicized in this way. 

The Fed is a political tool.  Abolish the Fed.