Federal Reserve Expected To Make Two Cuts By Investors

By Julie Newmar 13 Feb 2020 Top stories,Business

The officials of Federal Reserve in this week have made an affirmation on their commitment of staying put on the rates of interest for the time being but the markets have been demanding something else. The futures market of the Fed, where the traders go for betting on the policy decisions of the central bank have been pricing in on a chance of 58% to see a cut in the rates by the month of June. The traders have even gone on to the extent of making room for two cuts by a chance of close to 60% for a move further lower in the month of December.

The expectations to see an easing have seen an acceleration since the spread of the coronavirus globally and this has threatened to affect the already slowing economy of China. The stocks have also surrendered their gains which they had in January and the bonds have been once more flashing a signal of recession via an inverted curve. The markets may then be bracing themselves against the chance of both a medical and economical problem in future.

The experts have said that the Fed is not going to separate itself from its human aspect however this is going to be about growth and whether growth is going to be affected by it. China is the second biggest economy in the world and if China suffers in demand, the world is going to follow suit as well. The impact will also be on the United States and this is going to make the Federal Reserve feel the need for a stimulus to boost the growth globally and for United States in particular.


Interested in this report?

Get Your Sample Now!

Julie Newmar

After pursuing a Bachelor’s Degree of Science in Business Administration, Julie Newmar took the path of writing as a career merely for being fond of writing. At Business Stats News, Julie heads the Department of Business and deals with writing business articles and reports, including mergers & acquisitions, stocks & shares, diverse set of markets, cryptocurrencies, digitization, new developments, funding, new rules & regulations hampering of boosting the market status or overall world economies, ad much more. She is also responsible for the final quality check of articles and reports written by other team members and interns. It has been 5 years that Julie is a part of the Business Stats News

Related Post

    No Record Found