The Fed to cut rates two more times by the end of the year

The tone and substance of the press conference after the July 31st meeting showed that the Fed is getting more concerned about the global economy and trade uncertainties, which have intensified over the last days.

Highlights:

  • The tone and substance of the press conference after the July 31st meeting showed that the Fed is getting more concerned about the global economy and trade uncertainties, which have intensified over the last days.
  • This and the deterioration shown by the latest economic indicators lead us to update our Fed call. We keep continue to expect another 25 bps cut in September but bring forward to Q4 the final 25 bps cut we projected for the beginning of 2020.
  • A cut at the December meeting still seems more likely than one in October, as it would come in conjunction with a new set projections. Risks remain tilted to bolder accommodation, though.

Download the full publication below

THE FED TO CUT
RATES TWO MORE
TIMES BY THE END OF
THE YEAR

RELATED INSIGHTS

GLOBAL VIEW – ENJOY SUMMER WHILE IT LASTS
As lockdowns have been lifted and global activity rebounded from the Q2 nadir, hopes of a strong recovery have helped risk assets advance further over July.
Generali Investments among preferred asset managers brands in Europe
Listen to the dedicated Podcast by Vincent Chaigneau, Head of Research, on our view on the economic recovery, new behaviours in the aftermath of the pandemic and the unique opportunities for a European fiscal and political integration.
PODCAST:
LIFE AFTER COVID -
THE LDI VIEW
Listen to the dedicated Podcast by Vincent Chaigneau, Head of Research, on our view on the economic recovery, new behaviours in the aftermath of the pandemic and the unique opportunities for a European fiscal and political integration.