Fed to take things slow - ING
|According to James Knightley, chief international economist at ING, recent US data has been encouraging, with the consumer sector clearly in a good place and even manufacturing showing renewed signs of life.
Key Quotes
“2Q GDP will undoubtedly be weaker than in 1Q but, given the volatility in trade and inventories, we think it's better to look at the two quarters together. This gives an average growth rate of 2.5%, which is clearly very respectable. This is slower than the 3% growth seen in much of 2018 and there is the threat that trade uncertainty will continue to act as a brake on activity.”
“To combat this risk, we expect the Federal Reserve to pull the trigger on a precautionary 25bp rate cut on July 31st with a further 25bp move likely in September. While inflation is benign, to us the economic backdrop doesn't appear bad enough to justify more aggressive action.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.