If low inflation, a wobbly economy and tariff jitters weren't enough to push the Federal Reserve to lower interest rates, there's also the simple reason of the swelling national debt.
With all that in mind, the Fed could have no choice but to lower rates, unless it wants to go back to buying Treasurys itself.
"Absent a technical bazooka, stresses will leave one option left: more rate cuts," he said. Reductions in the benchmark overnight funds rate will need to be "aggressive enough to re-steepen the Treasury curve such that dealer inventories can clear and inventories don't drive funding market stresses."
Markets already expect the Fed to cut rates after July's 25 basis point reduction, the first time that had been done in nearly 11 years. Popular reasons for the cut are., the persistently low inflation that policymakers fear has held back living standards, and the ongoing tariff war with China.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
The US budget deficit is up 27% and getting closer to $1 trillionThe increase comes a little over a year and a half after the Trump administration ushered through a $1.5 trillion tax cuts that the White House has vowed would pay for itself.
Baca lebih lajut »
Tumblr, Which Once Fetched $1.1B, Sold For Far Less By Verizon To Auttomatic Inc.Tumblr, once a major force in social media, founded by a 19-year-old and bought by Yahoo for $1.1 billion, has been unloaded by Verizon Media for far less than that to Auttomatic, the parent compan…
Baca lebih lajut »
CIT to buy Mutual of Omaha Bank for $1 billionCIT Group Inc. announced Tuesday a deal for its CIT Bank N.A. subsidiary to buy Mutual of Omaha's savings bank subsidiary, Mutual of Omaha Bank, for $1...
Baca lebih lajut »
Morgan Stanley analysts say Fed to cut U.S. rates in SeptemberMorgan Stanley analysts said on Monday that they now expect the U.S. Federal Res...
Baca lebih lajut »
U.S. consumer inflation outlook declined as Fed weighed rate cuts - surveyConsumers in the United States kept their expectations of inflation restrained i...
Baca lebih lajut »
Italy's $1 homes might be dirt cheap, but they need a lot of work — take a look insideI went all the way to Sicily to visit three towns that are selling homes for $1. Here's what foreign buyers are getting themselves into.
Baca lebih lajut »