Two Fed policymakers on Thursday signaled they are open to delivering another ra...
THE WOODLANDS, Texas/NEW YORK - Two Fed policymakers on Thursday signaled they are open to delivering another rate cut after a report showed the growth in the vast U.S. services sector is slowing, but the Fed’s No. 2, speaking late in the day, gave little away on his own thinking.
The U.S. consumer and economy are in a “good place,” and the U.S. labor market is “very healthy,” Clarida said. At the same time, risks include slowing global growth, uncertainty over trade, and persistent low inflation overseas, all of which impact the U.S. economy.
“If we wait for weakness in global growth and manufacturing and business investment to seep into other parts of the economy... I think we likely have waited too long,” Dallas Fed President Robert Kaplan told a group in a Houston suburb after that report.
But not all 17 Fed policymakers backed the cuts; in September, several wanted rates to stay where they were, and one wanted a deeper rate cut. Rate futures traders now see an 88% chance of a quarter-of-percentage-point rate cut at the Fed’s October 29-30 meeting, and a better-than-even chance of a fourth rate cut by year’s end that would bring the central bank’s target range to 1.25% to 1.5% and completely reverse all of last year’s tightening.FILE PHOTO: Chicago Federal Reserve Bank President Charles Evans visits the online music retailer Sweetwater, in Fort Wayne, Indiana, U.S. September 14 2018.
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