With U.S.-China trade tensions roiling markets, investors are counting on suppor...
NEW YORK - With U.S.-China trade tensions roiling markets, investors are counting on support for stocks coming from a Federal Reserve willing to keep cutting interest rates to help the U.S. economy avoid a severe downturn.
“If the Fed gives forward guidance that suggests less than what the market is thinking, then you will probably see markets sell off,” said Jamie Cox, managing partner of Harris Financial Group in Richmond, Virginia. “So long as the Fed plays along with what markets are pricing in...I think markets will be very stable.”
“The market is going to want to see a focus that we have a cut and there is likely more coming,” said Keith Lerner, chief market strategist at SunTrust Advisory Services in Atlanta. “They want to know that the Fed is vigilant and will act aggressively if needed.” The European Central Bank’s decision on Thursday to cut interest rates and restart a larger stimulus program could further pressure the Fed to cut rates, as the ECB’s move stands to weaken the euro against the dollar and thereby drive up the price of U.S. exports - an issue that especially vexes Trump.
Powell “has had enough practice to know that he does not want to move markets or make news,” he added. “Historically, what they’re doing now, which is cutting rates in an economy that is not in a recession and not really in any imminent risk of a recession, has been positive for the stock market,” said Mona Mahajan, U.S. investment strategist at Allianz.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Trade optimism pressures yen but caution prevails ahead of Fed, BOJThe yen was pinned near a six-week low versus the dollar as signs the United Sta...
Read more »
Trade optimism pressures yen but markets wary ahead of Fed, BOJThe yen was pinned near a six-week low versus the dollar on Friday as signs the ...
Read more »
Tunisia’s election features fed-up voters and bizarre candidatesTunisia hosted the first true presidential debate in the Arab world, yet the front-runner was nowhere to be seen
Read more »
U.S. core inflation firming, but Fed still seen cutting ratesU.S. underlying consumer prices increased solidly in August, leading to the larg...
Read more »
Inflation Comes Back Into the Picture for the FedNew Labor Department data shows that inflation is warming back up, and that's putting the Fed in a complicated situation. Spencerjakab explains. WSJWhatsNow
Read more »
U.S. producer prices rise; Fed still seen cutting interest ratesU.S. producer prices unexpectedly rose in August and underlying producer inflati...
Read more »