Fed's Williams says policymakers need to better prepare for lower interest rate world

https://www.reuters.com/article/us-usa- ... SKCN1SK0OL

ps:John C. Williams, president and CEO of the Federal Reserve Bank of New York speaks

Citi Sees U.S. Rate Cuts in September, December
June 7, 2019, at 11:08 a.m.

(Reuters) - A Citi currency strategist said on Friday he expects the U.S. Federal Reserve to reduce key U.S. borrowing costs by 50 basis points in September, followed by a 25 basis-point rate cut in December.

There is a “material risk” of a 25 basis-point rate decrease at the Fed’s July policy meeting and “maybe a premature end” of its balance sheet runoff in June, due to a challenging global environment and sluggish domestic inflation, Citi FX strategist Ebrahim Rahbari wrote in a research note.

https://uk.reuters.com/article/us-usa-e ... KKCN1T81S8

Fed keeps rates unchanged

Source:

vvFish wrote: Thu Jun 20, 2019 12:47 pm

Ahh Mr Fish! You are a market sniper!

The Dow today mirrors the decision making process of Trump.....like a yo-yo.....

Fed's Powell: Fed to act as appropriate amid increased uncertainties

Comments from Powell in Paris:

• US growth appears to have moderated
• Repeats that uncertainties are viewed around trade and global growth
• Fed saw core PCE running at 1.7% y/y in June
• Baseline Fed outlook is for US growth to remain solid but uncertainties have increased
• Overall US growth appears to have moderated in Q2
• Long-run factors contributing to lower interest rates, growth and inflation likely to persist
• Manufacturing sector has been weak since the start of the year
• Growth in US consumer spending appears to have bounced back but business investment growth has slowed notably

Powell reiterated his pledge to act appropriately to support the US economy and that the central bank is 'carefully monitoring' downside risks. He said that the FOMC has "raised concerns about a more prolonged shortfall in inflation below our 2% target."

His comments are essentially a repeat of what he said last week and that isn't a surprise given the short turnaround. In any case, gold like the reminder that lower rates are coming and has recoped the drop down to $1402 in a rebound to $1411.

Source:

Goldman Now Expects Fed to Cut Three Times in Total This Year

Surging trade tensions between the U.S. and China and the increased prospects of a hard Brexit mean the Federal Reserve will cut its benchmark interest rate three times this year, according to a revised outlook from economists at Goldman Sachs Group Inc.

The investment bank no longer expects a trade deal with China before the 2020 U.S. election, and said the Fed has grown increasingly responsive to trade tensions, global growth worries and bond market shifts.

"In light of growing trade policy risks, market expectations for much deeper rate cuts, and an increase in global risk related to the possibility of a no-deal Brexit, we now expect a third 25-basis-point rate cut in October, for a total of 75 basis point of cuts," economists led by Jan Hatzius wrote in a note.

. .

Goldman sees a 75% chance of a 25-basis-point cut in September, a 15% chance of a 50-basis-point cut and a 10% chance of no cut.

For the October meeting, the bank sees see a 50% chance of a 25-basis-point cut, a 10% chance of a 50-basis-point cut and a 40% chance of no cut.

"By the December meeting, we think inflation numbers running at roughly 2% will lead the Fed to stop cutting," Goldman’s economists wrote.

https://www.bloomberg.com/news/articles ... -this-year

navid110 wrote: Wed Aug 07, 2019 2:08 am Goldman Now Expects Fed to Cut Three Times in Total This Year

Whoa!