May 31, 2019
NEW YORK (Reuters) – The U.S. Federal Reserve might begin lowering interest rates with a 50 basis-point cut at its September policy meeting in a bid to counter worsening economic and financial conditions from rising trade tensions, Barclays’ top U.S. economist said on Friday.
“As a result, our outlook for U.S. economic and financial conditions has worsened, and we now expect the Fed to cut its policy rate by 75 basis points this year, beginning with a 50 basis point cut in September,” Barclays’ chief U.S. economist Michael Gapen wrote in a research note. “Earlier action is not out of the question, in our view, if financial conditions deteriorate rapidly.”
(Reporting by Richard Leong; Editing by Susan Thomas)