Fears of an impending recession have some Wall Street economists betting that the Federal Reserve will approve an unusually big interest-rate cut when policymakers next meet in September. A majority of traders are already pricing in an 84.5% chance of a 50 basis point reduction during the Fed's meeting on Sept. 17-18, according to the CME Group, which tracks trading. Just 15.5% of traders think the Fed will approve a quarter-point cut.
With the unemployment rate above and core PCE inflation now below the Fed's year-end forecasts, we believe that the balance of risks favors more aggressive action by the Fed," UBS analysts wrote in a Friday note. "We are changing our base case to rate cuts of 50 basis points in September and 25 basis points each in November and December.
South Africa South Africa Latest News, South Africa South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Utoday_en - 🏆 295. / 63 Read more »