Goldman doesn't expect the US and China to reach a trade agreement before the 2020 election, and for the continued conflict to spark more cuts.
July's adjustment to a 2% rate from 2.25% marked the first interest rate cut since the 2008 financial crisis. After that 25-basis-point lowering — and following Powell's comments — expectations of further easing at the September FOMC meeting dropped to 63%, according to a Bloomberg survey.
Even before the Fed's initial cut, there was debate over whether a second cut would be necessary later in 2019. The prospect of two additional cuts was seen as a highly unlikely scenario. "In light of growing trade policy risks, market expectations for much deeper rate cuts, and an increase in global risk related to the possibility of a no-deal Brexit, we now expect a third 25-basis-point rate cut in October, for a total of 75 basis point of cuts," Goldman analysts said in the Tuesday note.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Goldman Sachs sees no trade deal before 2020 U.S. election, now expects three rate cutsGoldman Sachs said it no longer expects the United States and China to agree on ...
Lire la suite »
Goldman Sachs no longer expects US-China trade deal before 2020 election'A trade deal now looks far off,' analysts at Goldman Sachs said, amid rapidly intensifying tensions between the two economic giants.
Lire la suite »
Apple, Goldman Sachs start issuing Apple Cards to consumersApple Inc rolled out its virtual credit card on Tuesday, working with bank Goldm...
Lire la suite »
Goldman Sachs, despite Monday's rout, still believes S&P 500 can add another 9% by year-endGoldman strategist David Kostin acknowledges the U.S.-China trade risk but says conditions are fundamentally 'still pretty much in line.'
Lire la suite »
Goldman Sachs, despite Monday's rout, still believes S&P 500 can add another 9% by year-endGoldman strategist David Kostin acknowledges the U.S.-China trade risk but says conditions are fundamentally 'still pretty much in line.'
Lire la suite »
Goldman Sachs no longer expects US-China trade deal before 2020 election'A trade deal now looks far off,' analysts at Goldman Sachs said, amid rapidly intensifying tensions between the two economic giants.
Lire la suite »