The central bank could end the reduction of its balance sheet ahead of schedule, a move that would add further monetary stimulus to the U.S. economy.
The central bank could end the reduction of its balance sheet ahead of schedule, according to strategists from Ned Davis Research and Goldman Sachs.Ending the process ahead of schedule would keep monetary conditions looser as more liquidity would remain in the system.
The central bank could end the reduction of its balance sheet ahead of schedule, a move that would add further monetary stimulus to the U.S. economy, according to strategists from Ned Davis Research and Goldman Sachs. Earlier this year, the Fed indicated it would end its balance-sheet reduction process by September.
"It would be harder for the Fed to explain why they were cutting rates and letting the balance sheet continue to run-off," said Joseph Kalish, chief global macro strategist at Ned Davis Research, in a note. "That would be like pressing on the gas and the brakes at the same time." In October 2017, the central bank began to run off those assets on a monthly basis as it appeared the economy was on better footing. That process has been referred to by experts, and President Donald Trump, as "quantitative tightening." The Fed also hiked rates four times in 2018.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Federal Reserve's quick pivot to easier policy started with a Trump tweet on tradeThe road to the Fed's policy pivot to lower interest rates began in early May, with a tweet from President Trump on trade.
Baca lebih lajut »
The market needs a trade war deal more than a Fed rate cut, Art Hogan saysNational Securities' Art Hogan sees the U.S.-China trade war as the market's biggest risk – not Fed policy.
Baca lebih lajut »
U.S. Stocks Extend Gains After Fed Hints of Interest-Rate CutU.S. stocks rallied Thursday, putting major averages within striking distance of records after the Federal Reserve suggested it would cut interest rates if the economic outlook doesn’t improve in the coming months.
Baca lebih lajut »
Rate-cut euphoria elevates S&P 500 to record highThe S&P 500 index touched a record high on Thursday, driven Wall Street's e...
Baca lebih lajut »
S&P 500 Nears Record Close After Fed Hints of Interest-Rate CutThe S&P 500 was within striking distance of a new closing record after the U.S. Federal Reserve suggested it would cut interest rates if the economic outlook doesn’t improve in the coming months.
Baca lebih lajut »
S&P 500 ends at record as investors pencil in July rate cutU.S. stocks ended strongly higher Thursday, with the S&P 500 notching a record close, as investors penciled in a July rate cut a day after a Federal...
Baca lebih lajut »