The Fed will most likely cut rates for a third consecutive time next week. A lot of attention will be given to Powell’s wording of possible future rate cuts and whether recent liquidity announcements are in fact QE or not. We expect the Fed to cut for a third consecutive time at next week’s FOMC meeting. When re-assessing the three reasons the FOMC gave in July and September for cutting rates – i) signs of deceleration in economic activity, ii) prudency from a risk-management perspective and iii) the inflation outlook – we think a rate cut is warranted (Fed Watch: Frontloading rate cuts). Key figures have clearly ... (full story)