Fed typically ‘cuts swiftly and does not disappoint market expectations,’ says BAML

Market expectations are growing for a cut to benchmark interest rates, which currently stand at a range between 2.25% and 2.50%, and strategists at Bank of America don’t think that the market is going to be disappointed.

The BAML analysts said that analysis of the past five rating-cutting cycles, 1989-92, 1995-96, 1998, 2001-02 and 2007-08, point to the first rate cut taking place as soon as September. Mounting expectations for a Fed rate reduction, coming only after Powell & Co. delivered the most recent interest-rate increase in December, are supported by a number of factors: combating recessionary signs; boosting stubbornly low inflation, running below the Fed’s 2% target; addressing market anxieties; and, confronting the headwinds produced from the U.S.’s trade conflicts.

Hope for a rate cut, however, have buoyed stocks in recent trade, with the Dow Jones Industrial Average DJIA, +0.71% on pace for its fourth straight gain and the Nasdaq and S&P 500 index SPX, +0.61% on track for their third advance in a row.

What is this stock photo?

Like taking the hair of the dog, this just prolongs the hangover and makes it worse once it hits.

الإمارات العربية المتحدة أحدث الأخبار, الإمارات العربية المتحدة عناوين

Similar News:يمكنك أيضًا قراءة قصص إخبارية مشابهة لهذه التي قمنا بجمعها من مصادر إخبارية أخرى.

Global stocks are rallying as traders see Fed comments as 'central banks to the rescue'Asian and European stocks and US futures climbed on Wednesday after Fed Chairman Jerome Powell hinted a rate cut could be coming. Fed fuled rallies are great for 'traders' but not so great for 'investors'. This is an 11 yr fraud and must stop.
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