Reuters polling of 111 economist on what they expect from the fres Federal Reserve on July 31:
- 95% predict a 25 basis point cut
- Two of the 111 said it’d be 50bps
- Two said Fed to remain on hold
Reuters add a good point from Capital Economics:
- “The biggest reason for the Fed to cut rates is because it has been priced into the markets for a while now. If they didn’t follow through and cut, it would cause a bit of a shock”
It would be bedlam in the stock market I reckon, yep
Anyway, more:
- “I think the recent general message from the Fed seems to be that it’s more about downside risks to growth rather than the economy being already weak”
