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Fed: reduced rates at the current meeting, and more ..?


The key event of the week, and the month as a whole, can be called a meeting of the Federal Reserve System, or rather its results. Many market participants are interested in the question - should expect a pause in easing monetary policy or in front of the cycle of interest rate cuts?

Most experts expect that the regulator at the current meeting would reduce the interest rate by 0.25% to 1.5-1.75%, but the head of the central bank's Jerome Powell signaled that it will not lower interest rates further Fed.



It is noteworthy that, traditionally, on the eve of the meeting of the representatives of the Fed's comments on his actions, but this time, did not hear a hint about what the interest rate will not be reduced. That is, reducing the interest rate should not wait.

Also recall that last week again, Donald Trump made comments in the Fed's address, namely, he urged officials to be more active, thereby supporting the economy by lowering interest rates. But the Fed is independent, so it is hardly criticism and calls Trump will have an impact on the regulator's decision.

But be that as it may, the Fed Chairman Powell has twice cut interest rates, and even launched a printing press, but have repeatedly said that these measures would be required. He said that the first interest rate cut - it is just an adjustment policy.

Experts note that a considerable extent the Fed does not need to cut interest rates, and the fact that running a program of buying assets, and so will support the economy.

In addition, the Fed is currently in the best position when compared with other central banks, that is, the regulator has room to maneuver if necessary.

Recall that the Fed has put into practice after each meeting, the head of Jerome Powell delivers a press conference at which explains its decision. And at this meeting it is likely that Powell signaled on the further actions the regulator.


WELTRADE   analyst




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