Citi on the FOMC, 25 bp cut this month and another by year end

Author: Eamonn Sheridan | Category: Central Banks

The 25 basis point interest cur from the Fed (July 31) is baked in.

I posted earlier on Barclays who are calling another 50bps to follow soon:
Citi, on the other hand, are
  • 25 in July (and say 50 is a "real possibility")
  • 25 by end 2019
Citi see an increased downside risk for the US economy …. but acknowledge:
  • that view is clearly not shared by Chair Powell
  • July … a 25 basis point cut is likely to provoke two or more dissents, 25 basis points may be the compromise policy outcome
  • Following … one additional 25 basis point cut, most likely in September

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