The Fed won’t cut rates at its June meeting. Here’s why
- The Fed is likely to cut rates this year multiple times, but not at the June 18-19 Federal Open Market Committee meeting.
- Market watchers see three reasons: the G-20 summit, a willingness to resist political and market pressure, and a reluctance to make December’s hike look like a mistake.
- “The Fed is going to look at the data, they’re going to look at what their models say. To them, it doesn’t matter what the markets say,” says Lindsey Piegza, chief economist at Stifle. Read More @ https://www.cnbc.com/2019/06/14/three-reasons-why-the-fed-wont-cut-rates-at-its-june-meeting.html
The Fed is likely to drop ‘patient’ word next week, clearing way for July cut, economists say
- When Federal Reserve officials meet next week, they are expected to clear the way for a July interest rate cut by downgrading their economic forecast, tweaking the language in their statement and reducing their interest rate forecasts.
- The Fed is expected to remove the word “patient” from its statement, signaling that it is ready to move on interest rate cuts to help the U.S. economy make it through a period of slower growth and the potential impacts of trade wars.
- Fed funds futures are pointing to odds of about 80% for a July cut and about 20% for a June cut. Read More @ https://www.cnbc.com/2019/06/14/fed-rate-cut-could-come-sooner-than-some-expect-but-not-yet.html
Trade war could cause global recession, Beijing official warns, as US investment growth in China sinks
- US investment in China grew 7.5 per cent between January and May, year on year, a much slower pace than the 24.3 per cent recorded between January and April
- Mofcom spokesperson Gao Deng told a press conference in Beijing that the trade war ‘could cause a recession in the United States and global economies’ Read More @ https://www.scmp.com/economy/china-economy/article/3014407/trade-war-could-cause-global-recession-beijing-official-warns
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