The Fed may cut rates once more in Gregorian calendar month – UOB part 2

The Fed may cut rates once more in Gregorian calendar month – UOB part 2

“The FOMC statement didn't decide to an additional rate cut however left that possibility open for it to try and do additional if required”.

“The earlier finish to the record Reduction (BSR) program in Aug additionally Drew some issues as some concern it should offer the incorrect impression that the FOMC views it as a lively tool of policy. The read was in all probability not helped by the on-going review of financial Policy Strategy, Tools and Communication Practices wherever the Fed’s “latest finding” may counsel a additional aggressive use of its unconventional tool box once consecutive want arise”.

“The Jul FOMC minutes doesn't modification our expectations that the Fed can continue pause within the Sept FOMC before delivering another 25bps cut in Dec, lowering the edge of FFTR to two.00% by end-2019, that matches the Fed’s two inflation target. however the next market & US-China trade speak developments, and temporary yield inversion episodes will warrant a review of our FOMC outlook and that we can publish our next report when this week’s Jackson Hole Symposium”.