Dow Jones slips, other US indices flat as traders await the quantum of Fed rate cut


US Federal Reserve meeting LIVE Updates: The world’s largest economy is expected to see the first rate cut in four and a half years, amidst fears of an oncoming recession. Stay tuned for live updates and analysis as the major economic event unfolds on September 18.

US Federal Reserve meeting LIVE Updates: Contrary to fears of a likely recession in the US, the latest retail sales data showed strong consumer spending ahead of the Federal Reserve’s policy meeting, which ends today (September 18). Interestingly, the 2007 rate cutting cycle too began on the same day, three months before the Great Recession.

US retail sales rose by 0.1% in August, defying economists’ expectations of a 0.2% decline. Excluding auto sales, retail sales rose 0.1%,  slightly short of the 0.2% growth forecast.

Global markets await the first rate cut by the US Federal Reserve since March 2020 as inflation has moved closer to its target of 2%. A cut in benchmark interest rates will bring down the cost of borrowing for companies in the US, and send a signal to many central banks scheduled to review their own monetary policy this week.

The big question right now is: will the Fed chair Jerome Powell cut the Fed funds rate by 25 basis points or 50? 100 basis points make a percent.

CME Group’s Fed Watch tool shows a 67% probability that the central bank will cut rates by 50 basis points, up from around 47% on Friday.

Wall Street’s main stock indexes rose on Tuesday, with the S&P 500 hitting an intraday record high ahead of a crucial Federal Reserve interest-rate decision, after fresh economic data allayed worries of a sharp slowdown in the U.S. economy.

Stay tuned for live updates and analysis as the major economic event unfolds in the next two days



Read More: Dow Jones slips, other US indices flat as traders await the quantum of Fed rate cut

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