Source: Dubai – Arabia.net
Ramy Abu Zeid, Director of Market Research Department at ATFX Global Markets, said that the markets are currently pricing in the rate cut by the US Federal Reserve in light of signs of entering into a recession.
The minutes of the last Federal Reserve meeting showed that the majority of participants agreed with the decision to cut interest rates by 25 basis points in September, but differed regarding the course of monetary policy in the future.
Where the participants unanimously agreed on the escalation of risks associated with the US administration’s trade wars, especially with China, in addition to the slowdown in global growth and Brexit developments, but they differed over the impact of this on the US economy, and whether it calls for further interest cuts.
Participants also agreed on the necessity of holding a discussion to decide on increasing the size of the Federal Reserve’s budget due to the short-term money market turmoil.