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The Federal Reserve Bank will be holding its monetary policy meeting this Wednesday.
The central bank is widely expected to deliver another quarter-point rate cut at this week’s meeting.
However, not everything is set in stone. Despite the CME Group’s Fed Watch tool assigning a > 90% probability, there is still scope for the Fed to disappoint.
The expectations for another rate cut come amid softening growth in the labor market and the US economy itself.
The central bank has cut interest rates two times this year in July and September and the Fed funds rate currently stands at 1.75% – 2.00%. Many investors are betting on another rate cut.
Among those include US President Trump who has been repeatedly calling for the Fed to lower rates and restart the central bank’s QE program.
If the Fed follows through with today’s rate cut, it would echo similar policy moves in 1998. Back then, the central bank delivered three rate cuts amid an expanding economy. The central ba...
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