Federal Reserve watchers said the central bank will abandon itspatient policy stance and cut interest rates incoming months as President Donald Trump's planned new tariffs onMexican goods may drag down U.S. economic growth.
JPMorgan Chase & Co. chief U.S. economist Michael Feroli nowprojects quarter-point rate reductions in September and December,while Barclays Plc's Michael Gapen sees a half-point cut inSeptember followed by another quarter-point by yearend. NatWestMarkets economists and former Fed Governor Laurence Meyer also saidthe central bank will act to bolster an economy that is beingbuffeted by trade tensions and other headwinds.
“Even if a deal is quickly reached with Mexico, which seemsplausible, the damage to business confidence could be lasting, withconsequences that might still require a Fed response,'' Feroli saidin a note to clients on Friday.
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
