The Fed is expected to cut rates for the first time since the financial crisis

The Federal Reserve is poised to cut interest rates on Wednesday for the first time since the 2008 financial crisis to extend the longest economic expansion in US history.

The move would come despite a strong US economy. But some cracks are beginning to show: The global economy is softening, American manufacturing is slowing, and the global trade war isn’t helping matters.

But a potential rate cut would also follow months of pressure from President Donald Trump, who has broken with his predecessors’ practice of walling off the central bank from politics.

Jerome Powell, the chairman of the world’s most influential central bank, has repeatedly pledged to follow economic data, and policymakers have become increasingly worried that uncertainty, caused in part by the President’s trade wars with China and other countries, will hamper global growth and dampen investment.

“We are carefully monitoring these developments and assessing their implications for the US economic outlook and inflation, and will act as appropriate to sustain the expansion,” Powell reiterated in remarks delivered at a French government conference in Paris on July 16.

Even before the central bank signaled the possibility last month, investors had already priced in a reduction in the federal funds rate, which influences the cost of mortgages, credits cards and other borrowing. Those expectations piled on additional pressure on the Fed to move at this week’s meeting to avoid rattling markets with an abrupt change in course.

The Fed chairman has brushed off such pressures — political or otherwise — arguing the Fed is “insulated” from such demands as an independent institution outside of the control of the White House and whose decisions are informed by incoming economic data.

The Fed last raised rates in December but has backed off plans for further tightening.

In June, Powell began to make the case that the Fed, like other central banks, around the world needed to act earlier to get ahead of any economic weakness especially given how low interest rates currently are — a reversal from his previous stance.

“If you see weakness, it’s better to come in earlier rather than later,” Powell said at an appearance before the Council on Foreign Relations in New York. “I think most central banks would want to act preemptively rather than let a downturn gather steam, in a sense, the thought being an ounce of prevention is worth a pound of cure.”

That message has been echoed by other top officials, including Federal Reserve Bank President William Dudley.

Efforts by the Fed to prevent an economic downturn is unlikely to win a reprieve from the White House. A day before policymakers were set to gather for their two-day interest-setting meeting in Washington this week, Trump chastised the Fed for making “all the wrong moves,” adding, “a small rate cut is not enough.”

Trump has kept up a year-long relentless attack against the Fed, often lamenting he regrets appointing Powell for the role, and going so far as to threaten to fire him. He’s called the central bank his “biggest threat” and accused it of behaving like a “stubborn child” for refusing to cut rates and keeping credit too tight.

It will be up to Powell during his now-routine press conference to justify the decision to plow ahead with a rate cut given some prevailing strength in the economy. Since their last meeting in June, the data has consistently surprised to the upside with stronger-than-expected job gains, retail sales and economic growth in the second quarter.

Wall Street analysts also suggest Friday’s upcoming jobs numbers will be another important economic milestone that will determine whether a further rate hike may be coming as early as September as some anticipate.

“Expect an overall strong report, eroding the case for further cuts, but given the strong easing bias of Fed leaders, much depends on exactly how strong the report is and how they adjust their messaging in response,” Josh Wright, iCIMS’ chief economist and former Fed staffer said. “‘One and done’ still seems like an economically justifiable outcome.”

 

 

Source: https://www.cnn.com/2019/07/31/business/fed-rate-cut-july-meeting/index.html

 

 

 

 

98 Thoughts to “The Fed is expected to cut rates for the first time since the financial crisis”

  1. Thank you.

    Youseful blog. Good post.

  2. generic albuterol inhaler

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  3. doctor7online.com

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  4. viagra dosage

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  5. sildenafil 100 pill

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  6. ciprofloxacin hydrochloride

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  7. buy naltrexone

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  8. cialis online

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  9. viagra jelly

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  10. buy chloroquine phosphate

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  11. ed drugs online canada

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  12. sildenafil 20 mg dosage instructions

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  13. http://droga5.net

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  14. hydroxychloroquine brand name

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  15. cialis for sale

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  16. generic for cialis

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  17. keflex.webbfenix.com

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  18. amoxicillin without a doctor’s prescription

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  19. hydroxychloroquine states not allowing

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  20. online doctors in ontario

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  21. generic vidalista coupons

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  22. side effects of plaquenil withdrawal

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  23. cephalexin vs doxycycline for dogs

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  24. roman prices for cialis

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  25. cialis review

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  26. happy family store viagra

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  27. prednisone 50 mg for 5 days

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  28. l-arginine and dapoxetine interaction

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  29. generic cialis does it work

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  30. is hydroxychloroquine a generic drug

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  31. how exactly does ivermectin work

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  32. vidalista tablets 40mg price

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  33. prednisone 12 mg

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  34. food interactions with tamoxifen

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  35. vidalista 10mg price

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  36. unprescribed viagra

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  37. canada hydroxychloroquine over the counter

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  38. viagra works better than cialis

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  39. buy cialis 20mg without prescription

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  40. non prescription vidalista

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  41. too much cialis side effects

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  42. azithromycin without doctor prescription

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  43. hydroxychloroquine success rate

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  44. where can you buy cialis

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  45. 150 mg sildenafil dose safe

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  46. buy tadalafil 20mg without prescription

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  47. buy cialis

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  48. buy 100mg viagra online

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  49. how to make dapoxetine work better

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  50. sildenafil tablets sildenafil

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  51. hydroxychloroquine and eye health

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  52. who manufacturers hydroxychloroquine

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  53. does cvs have hydroxychloroquine

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  54. tadalafil where to buy

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  55. withdrawal from hydroxychloroquine

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  56. genericpillmen generic viagra

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  57. sildenafil 200mg tablets

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  58. buy cialis without prescription

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  59. tadalafil walgreens

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  60. cialis for daily use canadian pharmacy

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  61. where to get cialis in canada

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  62. hydroxychloroquine buy online

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  63. viagra with dapoxetine review

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  64. tadalafil 20mg price

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  65. order prescription viagra online

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  66. sulfa antibiotics list

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  67. cialis pill look like

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  68. zithromax capsules 500mg

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  69. cialis usa prescription

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  70. cialis 20mg cost

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  71. lancet retracts hydroxychloroquine study

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  72. aurogra 100mg price costco

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  73. amoxicillin pediatric dose

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  74. tadalafil soft tablets

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  75. tadalafil 10mg online

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  76. ivermectin scabies dosage for humans

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  77. tadalafil for high blood pressure

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  78. substitute for bimatoprost

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  79. fish doxycycline human

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  80. tetracycline indications

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  81. maximum vidalista dosage per day

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  82. aurogra 100mg canada

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  83. chloroquine online

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  84. cost of sildenafil cvs

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  85. best way to take levothyroxine

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  86. azithromycin for sale online

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  87. cephalexin dog dosage chart

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  88. hydroxychloroquine dosing in obesity and malarial

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  89. acyclovir generic pharmacy price

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  90. prednisone 5 mg taper schedule

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  91. buy dapoxetine

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  92. buy prescription ventolin without

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  93. […] discount cialis pills […]

  94. […] buy viagra from pfizer […]

  95. ivermectina 3

    The Fed is expected to cut rates for the first time since the financial crisis – UIA Financial

  96. […] buy cialis with prescription […]

  97. […] is it safe to buy viagra over the internet […]

  98. […] non prescription ed pills […]

Comments are closed.