Fed minutes shows divisions over future US rate cut path
The US Federal Reserve September meeting minutes revealed that some of the banks monetary policymakers are concerned that the markets may be expecting further rate cuts than the Fed will deliver.
The meeting minutes also showed sharp divisions between members are over the future rate cut path, especially after delivering 2 cuts during this year.
While market experts are betting that the Fed will continue to cut the rates for the third time this year at its October meeting.
The minutes also showed that the Fed might seek a better alignment of market expectations regarding the policy rate path with policymakers’ own expectations for that path due to the misunderstanding.
The Fed also cited concerns over the slowdown in economic growth and the mounting recession risks due to the impact of trade war, in addition to the low inflation and the manufacturing activity.
The Fed approved at the September meeting a quarter point rate cut for a range between 1.75% to 2%.
| Symbol | Last | Change | Chg.% | ||
|---|---|---|---|---|---|
|
|
|
1.0870
|
0.0055
|
0.5132%
|
|
|
|
|
1.2329
|
0.0092
|
0.7494%
|
|
|
|
Tadawul
|
6919.42
|
58.50
|
0.85%
|
|
|
|
|
15.206
|
0.789
|
5.473%
|
|
|
|
|
26.915
|
-1.900
|
6.594%
|
|
|
|
|
33.37
|
0.27
|
0.82%
|
|
|
|
|
1657.770
|
37.770
|
2.332%
|
|
