The Federal Reserve is likely to cut interest rates by less than financial markets expect over the rest of 2019 given robust jobs growth in the US, Fitch Ratings says. A 25bp cut now appears probable at either the July or September FOMC meeting but is unlikely to signal the start of a series of interest rate cuts, in contrast to the path currently priced into Fed funds futures markets. Dovish congressional testimony from Fed Chairman Powell last week suggests that an interest rate cut looks likely later in 2019. Powell's comments included a surprisingly prominent emphasis on low inflation considering that several ... (full story)