Will Powell ‘act as appropriate’ or wait for NFP confirmation?

Will Powell ‘act as appropriate’ or wait for NFP confirmation?

Jaya Maheshwari
23 Oct 2019 05:43 PM
Last FOMC in September saw a 25 bps cut in the overnight funds rate to a target range of 1.75% to 2%. Though the future path of policy seems to be a concern for many members of the committee, the upcoming policy meeting on Oct 29-30 will show if there is an alignment of market expectations and policy maker’s expectations. Market expectation of a quarter basis point rate cut is close to 95% and if this happens, it would be a third straight cut, a story similar to year 1998. Economic data showed a slow in US Industrial and Manufacturing production last week along with falling US Retail Sales and a lower than expected Existing Home Sales yesterday, all point to a slow in the world’s largest economy. China has also shown economic signs of slowdown along with other economies.

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