All attention during the week ahead will be on the FOMC’s monetary policy announcement and Jerome Powell’s follow-up press conference. As we mentioned above, the Federal Reserve is in a tough position as they feel pressure from around the globe to cut rates, however, the U.S. economy continues to grow at a solid pace and the labor market remains strong.
According to the CME FedWatch Tool, the probability for the Fed to cut rates by 25 basis points next week is at 81.9%. I also think the Fed will cut rates next week, however, my confidence that they will make an additional cut during the remainder of 2019 is waning as trade negotiations are moving forward and there have been signs that the U.S. economy remains on solid footing.
Read more from Ryan Nauman's Weekly Recap and subscribe to have it delivered to your inbox each week!