Tariff tumult boosts view that Federal Reserve may cut US rates
Updated : May 13, 2019 07:11 AM IST
Since January, the Fed has signalled it expects to leave rates unchanged while it takes stock of competing for economic crosswinds, including lower-than-ideal inflation and faster-than-expected GDP and jobs growth.
In contrast, Trump and other top administration officials have repeatedly urged the Fed to cut interest rates to boost economic growth, which is expected to slow this quarter from a 3.2 percent annual pace last quarter as the stimulative effect of last year's tax cuts fade.
Fed Chairman Jerome Powell earlier this month predicted that recent low inflation readings were driven by transitory factors, and reiterated his view that there is no pressing need now to either raise or lower rates.
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