Fed is close to cutting rates - NAB

Tony Kelly, senior economist at National Australia Bank, suggests that trade disputes continue to cast a shadow over the US economic outlook.

Key Quotes

“While recent data suggest some upside risk to our Q2 GDP forecast, business surveys point to a slowing economy.”

“The Fed is getting ready to cut rates; we expect two 25bp reductions in the federal funds rate, with July and September now the most likely dates.”

“There is considerable event risk around these projections – including the upcoming meeting between the US and Chinese Presidents.”

“Risks still appear slanted towards the Fed making more rather than fewer cuts.”