Global stocks rose on Friday after a top Federal Reserve official cemented expectations of a US interest rate cut later this month, fuelling appetite for riskier assets and keeping a cap on the dollar.
For the first time since the Great Recession a decade ago, the US Federal Reserve is poised to cut interest rates, shoring up America’s defenses as the global economy weakens.
Deutsche Bank passed an annual health check by the Federal Reserve, clearing a second hurdle at a critical time for the German lender in tests administered by the US central bank that measure banks’ ability to weather a major economic downturn.
US underlying consumer prices increased solidly in August, leading to the largest annual gain in a year, but rising inflation is unlikely to deter the Federal Reserve from cutting interest rates again next week to support a slowing economy.
Who said it? “A small rate cut is not enough, but we will win anyway!” The answer, technically, is President Donald Trump, who again this week fumed about the European Union and China on Twitter while lamenting that the Federal Reserve raised interest rates “way too early and way too much.” But it just as well
It has become a jarring and frequent contradiction. President Donald Trump blames the Federal Reserve for putting the US economy at risk while data shows an economy in “reasonably good” shape, as the head of the central bank recently said.