The underlying message by the Federal Reserve — after it cut interest rates on Wednesday — may not be as hawkish as many investors had interpreted it to be, according to the chief economist of Institute of International Finance.
Fed Chairman Jerome Powell suggested policymakers were not embarking on a new cycle of rate cutting. The 25 basis points cut on Wednesday marked the central bank’s first policy easing in more than a decade.
But Robin Brooks, managing director and chief economist of IIF, suggested that the central bank may not be done with cutting rates.
“I think the midcycle adjustment language that Chairman Powell used is important, ” Brooks pointed out. “The midcycle adjustments that we saw in ’95 and ’98 were 75 basis points each — so three cuts each. And I think that is actually pretty close to what the market was pricing going into this meeting.”
So, the central bank’s move and Powell’s comments on Wednesday aren’t “much of a hawkish surprise at all,” Brooks told. “My basic point here is: I think markets here need to chill a little bit and the underlying theme is more dovish than ... markets perceived.”
Brooks is not the only economist suggesting that the U.S. central bank could lower interest rates even more. Goldman Sachs analysts wrote in a Wednesday note that they “see an 80% cumulative probability of another cut at some point this year.”
© 2000-2025. Sva prava zaštićena.
Sajt je vlasništvo kompanije Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
Svi podaci koji se nalaze na sajtu ne predstavljaju osnovu za donošenje investicionih odluka, već su informativnog karaktera.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Izvršenje trgovinskih operacija sa finansijskim instrumentima upotrebom marginalne trgovine pruža velike mogućnosti i omogućava investitorima ostvarivanje visokih prihoda. Međutim, takav vid trgovine povezan je sa potencijalno visokim nivoom rizika od gubitka sredstava. Проведение торговых операций на финанcовых рынках c маржинальными финанcовыми инcтрументами открывает широкие возможноcти, и позволяет инвеcторам, готовым пойти на риcк, получать выcокую прибыль, но при этом неcет в cебе потенциально выcокий уровень риcка получения убытков. Iz tog razloga je pre započinjanja trgovine potrebno odlučiti o izboru odgovarajuće investicione strategije, uzimajući u obzir raspoložive resurse.
Upotreba informacija: U slučaju potpunog ili delimičnog preuzimanja i daljeg korišćenja materijala koji se nalazi na sajtu, potrebno je navesti link odgovarajuće stranice na sajtu kompanije TeleTrade-a kao izvora informacija. Upotreba materijala na internetu mora biti praćena hiper linkom do web stranice teletrade.org. Automatski uvoz materijala i informacija sa stranice je zabranjen.
Ako imate bilo kakvih pitanja, obratite nam se pr@teletrade.global.