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Strategies & Market Trends : Crash, When will it come ?

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To: Ms. Baby Boomer who wrote (972)9/14/2019 9:57:16 AM
From: Ms. Baby Boomer  Read Replies (1) of 1437
 
3 things to watch as Fed meets on interest rates next week...

With quarter-point rate-cut widely expected, Fed watchers hunt for clues about what comes next





Fed Chairman Jerome Powell said earlier this month that the central bank doesn’t expect a recession.After six weeks of market swings, the Federal Reserve is set to meet in a period of relative calm, at least if you don’t count a president breathing fire.

Stocks and bond yields have been rising this week. The 10-year Treasury yield TMUBMUSD10Y, +7.06% has seen its sharpest rise since 2013.

The Fed is expected to cut its benchmark interest rate by a quarter percentage point to a range of 1.75%-2%. That will be the second rate cut of the summer.

Talk of an emergency half a percentage point cut has died down given signs U.S. economic growth is stable and inflation picking up.

The quarter-point cut will be a “yawner.” What will be more interesting is if the Fed gives clues about what comes next, said Avery Shenfeld, chief economist at CIBC Capital Markets.

The market has priced in another quarter-point cut at the Fed’s December meeting, according the the CME Group’s FedWatch tool....

marketwatch.com

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