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Federal Reserve preview: More, more more...
The Federal Reserve have been keen to characterize the two rate cuts in July and September as “insurance” against external threats posed to the US economy (trade & weak global growth) rather than the start of a significant easing cycle. This narrative may have to change if, as we expect, they cut rates for the third consecutive time next week. The data flow over the past five weeks has clearly signaled a deceleration in US economic activity. What started out as a manufacturing downturn resulting from weak external growth, the headwinds from a strong dollar and the uncertainty and barriers to trade caused by the ... (full story)