Wall Street confusion after the reduction of interest rate

After the decision by the Federal Reserve on Wednesday to reduce the interest rate of US banks by a quarter of a point, the first such resolution for more than 10 years, confusion and confusion in the US financial world on future fiscal policy of the "reserve". The Fed. "

According to a report released yesterday by the US network "CNBC", the views of experts and economic badysts on the stock market "Wall Street" regarding the next stage of the Federal Reserve and President Jerome Baal, some of whom may not not reiterate the decision of the bank to reduce interest rates, The lowest this year. Representatives of Swiss banks UBS and Credit Suisse are among the main supporters of this view.

Two decisions are expected

On the other hand, some badysts are inclined to wait for two more Fed decisions aimed at further reducing interest rates. JPMorgan, Bank of America and Wells Fargo share this view and most experts expect the Federal Reserve to make another imminent decision to cut interest rates elsewhere next month or in the near future. October. Appreciation.

Stake

The confusion was not the only result of Wednesday 's decision, but it aroused resentment among a handful of US economists and badysts about credibility and the lack of credit. Fed's independence in the development of US monetary policy and decision-making, according to a CNBC report. As well.

The report confirmed that the credibility of the Fed was at stake and that the principle of political independence that the Federal Reserve claimed to be deeply involved has become fundamental.

The Fed must now make an effort to convince economists that it has made the decision to reduce the last rate for a purely economic reason, in order to maintain the rate of economic growth in America, not just the submission of pressures and pressure from US President Donald Trump. In the White House, interest rates were lowered and the "Federal Reserve" and its boss, Jerome Powell, have been attacking for a long time, unable to meet this requirement.

Economic facts

Analysts are struggling to absorb the economic need to make a rate reduction decision just seven months after the last decision.

Economic realities on the ground reinforce the belief that the Fed's recent decision to reduce the US Federal Reserve had no real economic reason, but rather a political decision to appease President Donald Trump.

In the United States, global economic indicators look good, if not impressive. In the second quarter of this year, GDP grew by 2.1%, which is much higher than expected. In terms of internal consumption measures, they are good to better. With regard to employment and employment rates, unemployment rates in the United States have recently hit their lowest level in more than half a century.