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Wall Street is beginning to anticipate more aggressive interest rate cuts from the Fed
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Loading...As trade tensions escalate and economic indicators weaken, Wall Street is beginning to anticipate more aggressive interest rate cuts from the Federal Reserve, with at least one forecast seeing a return to near zero.
Economists now see the likelihood of three quarter-point reductions before the end of the year, along with multiple moves in 2020 until it becomes clear that the U.S. central bank has staved off a recession. The anticipation comes as Goldman Sachs just announced that it reduced its GDP projections by 0.2 percentage point and Bank of America Merrill Lynch said it sees increasing chances of a recession in the next 12 months.
Other forecasters on the Street are joining the calls for weakening conditions that prompt the Fed to take a sharper knife to rates than officials indicated at the July meeting, which saw the first rate reduction in 11 years.
Source: CNBC
Trader Georgi Bozhidarov Read more:
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