Experts believe that there may still be cuts in the rates of interest by Fed

On Wednesday the central bank of United States had unanimously voted that the rates of interests are going to remain the same and had signaled that they are going to stay on hold till throughout the year 2020.

However experts have said that there is still a possibility that the Fed may cut the interest rates. The Chair of the Fed Jerome Powell has said that the economic outlook is still a one that is favorable despite the global developments and the risks that are going on.

He further added that as long as the information which is coming out of the economy remains consistent in a broader sense with the outlook, the stance which is currently taken for the monetary policy is going to remain appropriate.

However the experts feel that the ongoing trade war with China may change the best laid plans of the Fed.

The experts feel that there is going to be a rate cut which is going to take place in quarter 1.

They say that the resolution that has not taken place to the trade issues has underlined the uncertainty which they have been seeing and the pressure that is as a result being caused on the business investment. They further feel that until there is a deal that takes place or the December 15 tariffs are delayed or cancelled, there may still be a cause for an easing of rates.

They have praised the Fed to be flexible and have said that they were able to successfully pivot from their easing policy. The flexibility though may also lead to further easing when the data and news around the economy begins to flow.

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