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Fed divided ahead of key meeting
It seems clear the Federal Open Market Committee meeting on 18 September will result in a further 25 basis point cut in the federal funds rate. The relevant question is what the Federal Reserve signals about the rate outlook beyond this month. Market probabilities for the period following the September FOMC point to expectations of at least two further 25 basis point cuts through the end of 2019 or early 2020. Market participants, seeking clues and validation, will focus on the FOMC statement and Fed Chair Jerome Powell’s subsequent press conference. Uppermost on their minds is whether there will be a hawkish or ... (full story)