Everyone in the stock market currently is watching over Fed’s decision of cutting interest rates. Recent reports show Feds most likely going to announce the cutting of the rate of interest by quarter-point. When it comes to interest policies, the Fed has always been hard on it from the last many years. It’s been a decade when Fed declared cut of interest rates. By the end of July Feds chairman Jeremy Powell is going to announce interest rates getting lowered. Currently, the US is facing some external trade tensions, which is diminishing the country’s economic growth rate.
Now to increase the economic expansion of the USA Fed will have to declare cut of interest rates. At first, some experts said Fed might cut 50 basis point but after looking at the recent actions of the Fed expectations of investors have further gone down. Feds Jeremy Powell has always been hard when it comes to interest rates. He has believed in not cutting rates even though the USA was going through a trade war with China.
However, this is going to be the first time in a decade that Fed is going to cut interest rates. Investors are waiting for this fully quarterly point cut in the upcoming Feds general meeting. Jeremy Powell already said that Fed is going to cut interest rates and Asian market plus Donald Trump is looking at this upcoming interest rates announcement. The Fed is expecting a policy rate to 2.25% to 2.5%, which was everyone expecting. The current economic conditions in the USA are not right because of ongoing trade war issues. Many experts have already speculated that country is on the verge of inflation. This decision of Feds is undoubtedly going to have positive effects on the ongoing trade war between the US and China.