Tag Archive: rate cut

A Divided Fed

The Federal Reserve elected to cut interest rates again by 25-basis points at the conclusion of its meeting this week. The committee voted in favor of the cut by a margin of 7-3. The split may have been more than markets anticipated, and the Fed’s commentary was deemed to be not so easy when it comes to monetary policy. 7 of 17 FOMC members expect just one more rate cut this year. The not so dovish meeting sent stocks lower initially before they recovered. The... Continue Reading

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Is a Major Currency Debasement Ahead?

The U.S. Fed and other global central banks are in the process of easing monetary policies again. Although interest rates got nowhere near previous levels during the Fed’s recent tightening cycle, the central bank has decided that it is time to start cutting again. The Fed is not cutting from only 2.5% instead of 5.5%, however. The ECB tomorrow will present its latest plans to boost the region’s economy which will likely include a bazooka of rate cuts and fresh QE. Other central banks are... Continue Reading

A Lot Going On

Stocks have been on the rise in recent days as investors look forward to a rate cut by the Fed at the end of the month. Although expectations for a 50-basis point cut have declined significantly, such a move may still be on the table. If the Fed decides to cut by 25-basis points, that cut could be just the first in a series of cuts the Fed may have to make in the months ahead. Regardless of what the Fed does or doesn’t do,... Continue Reading

All Eyes on the Fed

This week features the release of the latest FOMC meeting minutes as well as testimony before Congress by Fed Chief Jerome Powell. The minutes will be released on Wednesday, while Powell’s remarks will begin Wednesday and conclude Thursday. The latest meeting minutes will likely take a back seat to Powell’s comments, and investors are hoping that the Fed Chief will provide some clarity about the central bank’s plans regarding rates going forward. Expectations for an interest rate cut have been dialed back in recent days... Continue Reading

Wait, What?

The highly anticipated Fed policy meeting has now come and gone, with Fed Chief Jerome Powell set to deliver his press conference. The central bank voted by a margin of 9-1 to hold the Fed Funds rate steady. The central bank did, however, still hint at the potential for rate cuts should conditions warrant such a move. The FOMC removed the word “patient” from its outlook, in a move that could signal a large degree of flexibility by the central bank. Some analysts have suggested... Continue Reading

$1700 Gold to Be Seen Soon?

There is no question that bullish momentum has been building in the gold market in recent weeks. A variety of factors including the ongoing trade war, the current economic slowdown and the potential for lower rates are just a few of the issues driving the yellow metal higher. It seems that an increasing amount of investors have been sounding the alarm bells about the U.S. and global economies, and according to a recent article from Kitco, billionaire investor Paul Tudor Jones is one of them.... Continue Reading

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