On Friday, Goldman Sachs said it continues to call for a quarter percentage point easing at next week’s Federal Open Market Committee meeting. This stance contrasted with news stories about refreshed speculation of a more aggressive cut.
Former New York Federal Reserve President Bill Dudley said on Thursday there was a strong case for a 50-basis-point interest rate cut at the Fed’s September 17-18 rate-setting meeting.
Investors on Friday reacted to news articles in the Financial Times and the Wall Street Journal, which highlighted that the size of the first cut could be a close call for Fed officials, triggering speculation of a larger cut.
(Source: ReutersReuters)
