The Federal Reserve is expected to cut the interest rate from 2.5% to 2.25%, many economists and industry leaders expect this quarter-point drop in interest rates, while others fear a larger drop. JP Morgan, Deutsche Bank, Credit Suisse, UBS, and Citi all predict a quarter-point drop while Morgan Stanley, Nomura, and others expect a half-point drop. Overall, the markets seem to have responded well to these assumptions, the DOW currently has grown and is expected to beat its all-time high record either by the end of this week or next week. Fed Chair Jerome Powell has yet to officially announce the cut but everyone is positive they will make these cuts.
The European Central Bank has also hinted at a cut of their fund's rate as well as the US-China trade war continues on. Industry experts believe that decreasing trade regulations and lowering taxes even further will serve the US economy better than lowering interest rates.
