FOMC

A rate cut alone probably won't avert a recession. A rate cut combined with a ceasefire in the trade war might, according to one market strategist.

The Federal Open Market Committee meeting featuring the release of a new Summary of Economic Projections should give the market a better clue as to whether the expected rate cut is part of a mid-cycle adjustment or the second step in an easing cycle.

The Federal Reserve is likely to cut interest rates this week as its takes out some insurance to keep the U.S. economic expansion continuing in the face of geo-political uncertainty and a global slowdown.

With a tweet, President Trump has reopened the debate about negative interest rates.

Thomas Garretson, fixed income portfolio strategist at RBC Wealth Management, and Craig Bishop, lead strategist, U.S. fixed income strategies at RBC Wealth Management, discuss the upcoming Fed meeting, rate cuts, the divide among participants, the inverted yield curve, Fed independence, and recession. Gary Siegel hosts.

President Donald Trump urged the Federal Reserve to lower interest rates to a level typically reserved for recessions or periods of persistently weak growth, suggesting that such a setting could allow the government to restructure Treasury debt at a lower cost.

Fed still divided, but 25 basis point cut is a good bet.

Federal Reserve Chairman Jerome Powell said the most likely outlook for the U.S. and world economy is continued moderate growth, but the central bank was monitoring “significant risks.”

The Federal Reserve Bank of New York sees a nearly 38% chance of recession by August 2020, up from 31.5% in the July reading.

With the markets expecting rate cuts to continue, the Federal Reserve won't commit to further action before meeting later this month.

Three Federal Reserve Bank presidents said they would cautiously consider supporting a rate cut.

A former top Federal Reserve official suggested the central bank reject interest-rate cuts that would help Donald Trump’s 2020 reelection prospects, drawing swift criticism that such forbearance would jeopardize the independence of a Fed already under fierce attack from the president.

While some Federal Reserve Bank presidents offered hawkish remarks at the Jackson Hole symposium, the markets still expect a 25 basis point cut, and analysts agree.

Federal Reserve Board Chairman Jerome Powell again pledged the central bank “will act as appropriate to sustain the expansion,” despite “no recent precedents to guide” policy decisions.

Two dissents on the vote to cut rates were the first of Chairman Jerome Powell's term.

“A couple” of Federal Open Market Committee members wanted a 50 basis point rate cut at its July 30-31 meeting, according to minutes released Wednesday, while “several” would have preferred no action.

The U.S. economy doesn’t appear to be headed toward a recession, Federal Reserve Bank of San Francisco President Mary Daly said.

Every coin has two sides and that is the case with a possible September rate cut.

Federal Reserve Bank of Boston President Eric Rosengren continued to push back against further interest-rate cuts by the central bank.

By the end of the week the municipal bond market should have a better idea of what Federal Reserve officials are thinking.