Dec 7
Fed Open Market Committee, December 11
· Risks to economic growth have increased substantially · The probability of more rate cuts is higher · We expect a 25bp rate cut in the next FOMC meeting The FOMC decided on October 31 to cut the fed fund rate as well as the discount rate by 25 bp. Following that decision, members seemed to have a neutral stance with respect to the economic outlook. As they expressed in the rate decision, “the upside risks to inflation roughly balance the downside risks to growth.” This assessment was to some
