Will the Fed cut rates in December?

JP Morgan
By November 14, 2019 15:54

Will the Fed cut rates in December?

After nine rate hikes between December 2015 and December 2018, the Federal Reserve (Fed) has conducted a dramatic U-turn in 2019, cutting rates three times in three consecutive meetings. Despite this relatively aggressive rate cutting cycle, the Fed has been keen to stop easing policy sooner rather than later. Investors seem to have received the message and as long as economic data remains stable, it seems unlikely the Fed will ease policy in the near future. Since the start of this rate cutting cycle in July, Fed officials have emphasized that this was a set of temporary cuts, required to help mitigate short-term headwinds and not the start of a prolonged easing cycle. However, bringing a rate cutting cycle to a close is no simple task. The financial market boost provided by cutting rates is addictive and it can be challenging for authorities to effectively wean market participants off this potent stimulus. At the last Fed meeting at the end of October, Fed Chair Jay Powell struck a balanced tone, emphasizing that “the current stance of monetary policy remains appropriate,” a clear signal to investors to temper their expectations for further easing. 

JP Morgan
By November 14, 2019 15:54

Search

Featured Events & Webinars

  1. T. Rowe Price – Webinar – What will a new era bring for Japan?

    October 7 @ 10:00 - 10:30

Twitter

"The relentless run in #riskassets over the last five months finally faded a bit in early September, as the S&P 500 fell nearly 8% and the tech-heavy #NASDAQ fell 11%. This year’s returns have been heavily influenced by the …" -> https://www.opiniopro.com/2020/09/northern-trust/an-interesting-fall/

"The current challenging market environment suggests a greater need than ever for alternatives. #Hedgefunds, which target differentiated, positive absolute #returns ..." -> https://www.opiniopro.com/2020/09/ubp/refining-alpha-in-the-hedge-fund-world/ #alpha #alternatives

"All eyes were on #centralbanks. As expected, the #Fed left its rates unchanged. It even said they would not move until inflation rose above 2% and stayed there for some time, a situation ..." -> https://www.opiniopro.com/2020/09/edmond-de-rothschild/central-banks-strive-to-maintain-visbility/

"Some regions of #Europe are returning to #lockdown – for instance some districts of Madrid badly hit by the second wave of the #pandemic. Yet, for now these lockdowns are ..." -> https://www.opiniopro.com/2020/09/axa/investing-to-pastures-greener/ #ecb

"Over the last five months, market participants have been following the COVID-19 pandemic as it has evolved into a #global health crisis and forced various forms of lockdown across the world. The next 12-18 months …" -> https://www.opiniopro.com/2020/09/blue-bay-asset-management/accessing-dislocated-corporate-credit-in-emerging-markets/ #em #corporatecredit

Load More...

Search on date

November 2019
M T W T F S S
 123
45678910
11121314151617
18192021222324
252627282930