Another week is beginning on the financial markets and the next few days will most likely be dominated by discussions regarding the expected interest rate decrease by the Federal Reserve. The central bank of the United States previously made statements that showed they are wary of risks to the American economy and willing to preemptively lower interest rates to shield it from damage.
However, there appears to be a lot of disagreement within the Federal Reserve itself about their future course of action. Unemployment rates in the United States are currently nice and low, and despite a few lackluster reports, the economy is performing better than all other developed countries’. Normally these circumstances won’t require any interest rate adjustments.
Nevertheless, the Federal Reserve is worried about the prolonged trade dispute with China and how it is exacerbating the global economic slowdown. Trump’s tariffs have been especially hard on American businesses, who are paying them. Now investors are confident that the Fed will lower rates for the first time in a decade this week, but no one knows if this would be the only rate adjustment for 2019, or if they will continue loosening their monetary policy over the next few months.
The rate decision will come on Wednesday after the end of the Federal Reserve’s policy meeting.
