Fed unlikely to start a full-on easing cycle - Goldman Sachs
|The US Federal Reserve (Fed) is widely expected to cut interest rates by a quarter-point to 2.00-2.25% on July 31.
That would be an insurance cut – a proactive move to protect against growing downside risks, according to analysts at Goldman Sachs.
Notably, while market-implied odds are consistent with a turn in the cycle, Goldman Sachs analysts do not foresee Fed starting a full-blown easing cycle in the near-term.
Key quotes
“Our reasoning for policy easing – slowing growth against a backdrop of subdued inflation and elevated uncertainty – is consistent with the Fed’s reasoning for insurance cuts.”
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.