Fed meeting amongst market movers today – Danske Bank

Danske Bank analysts suggest that the key focus today will be the Fed meeting tonight, where we look for another rate cut of 25bp but no pre-commitment to further cuts.

Key Quotes

“Another 'mid-cycle adjustment' cut is warranted by weak global growth and high uncertainty, while a still strong US consumer puts the Fed on a 'meeting-by-meeting path' to gauge the need for how much further support the economy needs.”

“We see a risk that markets will be disappointed from what might be perceived as a hawkish rate cut. We still expect the Fed to ultimately cut five times in total until March 2020 as we look for weak global growth and high uncertainty to prevail for some time. The tensions in the Middle East have only added to the uncertainty.”

“Saudi state television said the Saudi Defense Ministry will hold a media conference on Wednesday that will show evidence of Iran's involvement in the Aramco attacks, including the use of Iranian weapons.”

“On the economic front we get UK inflation and final euro area inflation for August and US housing starts.”