NEW YORK - With U.S.-China trade tensions roiling markets, investors are counting on support for stocks coming from a Federal Reserve willing to keep cutting interest rates to help the U.S. economy avoid a severe downturn.
“If the Fed gives forward guidance that suggests less than what the market is thinking, then you will probably see markets sell off,” said Jamie Cox, managing partner of Harris Financial Group in Richmond, Virginia. “So long as the Fed plays along with what markets are pricing in...I think markets will be very stable.”
“The market is going to want to see a focus that we have a cut and there is likely more coming,” said Keith Lerner, chief market strategist at SunTrust Advisory Services in Atlanta. “They want to know that the Fed is vigilant and will act aggressively if needed.” The European Central Bank’s decision on Thursday to cut interest rates and restart a larger stimulus program could further pressure the Fed to cut rates, as the ECB’s move stands to weaken the euro against the dollar and thereby drive up the price of U.S. exports - an issue that especially vexes Trump.
Powell “has had enough practice to know that he does not want to move markets or make news,” he added. “Historically, what they’re doing now, which is cutting rates in an economy that is not in a recession and not really in any imminent risk of a recession, has been positive for the stock market,” said Mona Mahajan, U.S. investment strategist at Allianz.
Meanin the quantum/range of drop...?
Trump market manipulation in progress! Who else will benefit but his criminal friends and family.
Till they don't have to pay you any pension from the funds anymore and keep it for themselves to make money This trick is in place so the banks can earn money interest on loans they need, however don't treat their customers the same It's a mass scam and everyone lets it happen
The economy is so terrible, we have to keep cutting. It is a shambles. The only way to stem the tide of the Trump Recession.
The 🍊🤡 will destroy our nation just to save himself money on his loans. Everything he touches is politicized and/or weaponized.
Let's go negative. Pay me to refinance my house.
I see what trump is doing. Trying to create a huge bubble that will burst, to buy up all the distressed properties at bargain prices.