Shortly after the Federal Open Market Committee reveals its decision on interest rates, Fed Chairman Jerome Powell will answer questions from reporters.
Former Wall Street Journal Fed reporter Jon Hilsenrath, who now runs Serpa Pinto Advisory, thinks that “the messaging is a lot easier” if the Fed cuts by 25 basis points because Powell can still make the case that the economy is strong and they don’t have to rush to cut rates. He says if they cut by 50 basis points, Powell will likely have to answer harder questions about moving too aggressively or concerns that the economy is slowing than they thought.
Hilsenrath thinks the Fed will cut by 50 basis points. Find out why in the video above.
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This post was written by Stephanie Mikulich.
Source Agencies
