Morgan Stanley sees Fed cutting by half percentage point at July meeting

CNBC/Patti Domm/7-10-2019

“Morgan Stanley economists expect the Federal Reserve to make a half percentage point rate cut to head off downside risks and the impact of a weakening global economy and trade tensions. ‘Risks to the outlook remain skewed to the downside. A non-linear impact to growth could materialize if financial conditions tighten, bringing corporate credit risks to the fore,’ the economists wrote in a note Wednesday.”

USAGOLD note:  We made reference to this article in this morning’s DMR.  With the chairman coming down decidedly on the side of lower rates, and perhaps other forms of accommodation, the remaining question is to what degree. Morgan Stanley says a half a point. Jim Cramer had an interesting reaction to Powell’s testimony today. “Powell,” he says, “seems to be very in sync with the White House all of a sudden.”

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