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From: Sally Ismail
Mubasher: Market expectations of a sharp reduction in US interest rates by the Federal Reserve have declined this month, following reports that the US central bank is moving towards a narrow cut. interest rates.
According to the Federal Foresight Agency (CMA) on Monday, investor expectations of a 50-basis-point cut at the July meeting fell to 14.6 percent, up from 14.5 percent earlier in the year. the day.
The opportunity to reduce interest rates by 50 basis points (0.5%) was about 46% Friday.
This is due to comments by US Federal Reserve Chairman John Williams, who called last week for a substantial reduction in interest, which President Donald Trump has hailed.
From CMMA to follow market expectations
While the expectations of a 25 basis point (0.25%) reduction to 73.4% today are the same as a week ago.
The US central bank has set its interest rates between 2.25 and 2.50% since the beginning of the year, before moving to a cautious approach, but the vote increases by 50 basis points.
According to an article in The Wall Street Journal, the Fed should apply a 25 basis point reduction in its interest rate at its next meeting later this month, with further cuts expected in the coming months to economic and commercial reasons.
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