Anticipation for July Federal Reserve Meeting

The Feds upcoming meeting will be taking place on July 30-31. Many are anticipating a rate cut of 25 basis points. The Fed is lowering the cost of borrowing money due to signals such as slowing economic growth, trade wars and internal and external shocks. These economic shocks happen when an unexpected event occurs, these events directly affect supply and demand. If a rate cut occurs at this months meeting, then it will be the first rate cut since 2008. Many have criticized Fed Chair Jerome Powell for his past decisions to increase the interest rate target range. US President Donald Trump has been a vocal advocate for rate cuts. He will most likely get his wishes this week. The consensus is that the rate cut will be either 25 or 50 basis points. Most believe that it will be a 25 basis point cut. It will be interesting to see how this decision will affect the economy.

July 28th, 2019

Jamal Nasim


Article by- Jeffry Bartash | MarketWatch
https://www.marketwatch.com/story/an-economy-gone-mad-the-fed-is-going-to-cut-interest-rates-despite-record-stock-prices-low-unemployment-2019-07-11