Rate Cut Drumbeat Gets Louder
As the trade wars continue to escalate with President Trump’s new threats to impose high tariffs on Mexico, Chairman Jerome Powell reassured the financial markets on Tuesday, saying the Fed will “act as appropriate to sustain” the current economic expansion. Is a rate cut appropriate to the times? Anxious about the trade war, Wall Street is expecting that the Fed will cut its benchmark rate twice before the end of the year (cnbc.com).
Not all observers think the Fed should act to cut interest rates. Even with inflation low and looming trade threats, Kansas City Federal Reserve President Esther George said there’s no need for a rate cut. President Trump, however, has been leaning on the Fed to cut interest rates in the context of the trade war with China, saying a rate cut would ensure a US victory: “Game over, we win!”
The rate game is not over though. We will keep watching as things unfold but for now, one thing is certain: interest rates today remain low. It’s a good time to lock in a fixed rate commercial property loan. Liberty SBF can get the job done in 45 days or less.
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