Federal Reserve officials lay out case for aggressive rate cuts
Updated : July 19, 2019 06:43 AM IST
Absent clear-and-present signs of a recession, policymakers are suggesting the US-China trade war is denting US business confidence, and that a global manufacturing slowdown and domestic inflation below the Fed’s target of 2 percent a year may be enough to act quickly and aggressively.
Fed Board of Governors Vice Chair Richard Clarida, meanwhile, said policymakers might need to act early to stimulate the US economy as an insurance policy against rising risks.
Traders in interest-rate futures are now betting policymakers will cut rates by half a percentage point at their July meeting, double the cut they expected just a day ago. Stocks gained on Thursday, while short-term bond yields sank.
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