Financial eyes are on the upcoming Federal Reserve interest rate setting meeting, scheduled for September 17th. Barring a surprise, it will take place against the backdrop of the chilling effect of the China trade conflict on economic growth. The U.S. central bankers, who vote on interest rate policy, are not in complete agreement on the degree of threat to the economy. Some favor a rate cut of 0.50% or more, while others believe that the current economy, with strong consumer spending and near full employment, does not warrant any rate cut. Look for Chairman Powell to gather the votes for a 0.25% rate cut, as a measured attempt to support the economy.
Meanwhile, Hurricane Dorian is rampaging up the U.S. coast, leaving a trail of suffering and economic destruction. It has also caused us to take a second look at the risk of hurricanes, particularly in Florida, where a significant number of firm clients own homes and/or vacation.
There is more: a political insider lays out his top ten fall issues and predictions; encouraging news for optimists; ideas for fall travel in New England and beyond; and two entertainment suggestions. We hope you read and enjoy!
- Dueling Fed Views: As noted above, there is an internal policy debate at the Fed on how much stimulus, if any, is needed by the U.S. economy. One camp favors a more proactive effort to stimulate the economy with a hefty rate cut, while the other comes from a “minimum effective dose” (or no dose at all!) perspective. (Reuters) (Washington Post)