Greg Ip is the chief economics commentator for The Wall Avenue Journal (gated).
He has weighed in on the FOMC resolution developing on Wednesday, September 18:
- The Federal Reserve’s interest-rate resolution this week seems to be harder than it ought to be. The actual query isn’t how a lot to chop, however the place charges should be. The reply is far decrease. That argues for a half-point minimize.
Goes on to say inflation is beneath management and that:
- there isn’t a lot proof a recession is within the offing. However ready for that proof is tempting destiny.
I can not say I agree. “Is not a lot proof” argues ready for at the least some IMO. I’m nonetheless tipping 25bp. Perhaps the info this week will tip the scales:
- UBS on the info forward of the FOMC assembly – what might set off a 50bp rate of interest minimize
This text was written by Eamonn Sheridan at www.forexlive.com.