The U.S. Federal Reserve will cut interest rates five more times by April 2020, according to analysts at Danske Bank.
The analysts anticipate that despite the aggressive call, the Fed will not pre-commit to further easing, instead retaining its current ad hoc approach. The note suggested that a sudden large cut of 50 basis points seemed excessive, since historically, larger cuts and cuts between meetings have occurred during existing recessions and rising unemployment.
"In our view, U.S. growth has peaked and will likely slow but we do not expect a recession to show up in the data near term ." The Danish bank suggested that if the Fed really hopes to reflate the economy and markets it may need to commit to more easing, or embark on deeper and faster cuts. Jakobsen said that further cuts should be expected "independent of rising inflation" and "independent of the fact that the U.S. economy is still running at 1.6-1.8% growth," since the central bank is operating on a "regret analysis" model.
"Ultimately, I think investors are going to have to prepare themselves for the monetary future of Japan," Jakobsen said.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Trump says Fed should cut rates by at least 1% 'with perhaps some quantitative easing'The president said the Fed has been hampered by a 'horrendous lack of vision' and said it should institute 100 basis points worth of reductions in its benchmark rate.
Baca lebih lajut »
Fed's Rosengren says cutting rates could worsen next downturn: BloombergBoston Federal Reserve Bank President Eric Rosengren on Monday signaled no willi...
Baca lebih lajut »
Fed Chair Jerome Powell is giving a speech this week, and traders will be listening closely for any hints of further interest-rate cutsThe Federal Reserve trimmed interest rates for the first time in a decade last month, and traders are hungry for more cuts.
Baca lebih lajut »
Trump attacks Fed Chair Powell's 'horrendous lack of vision,' calls for huge rate cut'Democrats are trying to 'will' the Economy to be bad for purposes of the 2020 Election. Very Selfish!' President Trump tweeted.
Baca lebih lajut »
Trump Calls for a Big Fed Rate Cut, Again Criticizes Central Bank ChairmanPresident Trump called for the Fed to sharply cut interest rates and again criticized the central bank’s chairman for a “horrendous lack of vision,” while reiterating his belief that the U.S. economy is strong.
Baca lebih lajut »
China to base new lending benchmark on medium-term rates; shares rally on rate cut hopesChina's announcement of key interest rate reforms over the weekend has fuel...
Baca lebih lajut »