The U.S. Federal Reserve will cut interest rates five more times by April 2020, according to analysts at Danske Bank.
The Fed cut rates by 25 basis points in July, but comments from Chairman Jerome Powell suggesting the cut was merely a “midcycle adjustment” sent stocks plummeting, with investors having hoped for further easing in the near future.
Powell cited three reasons for the initial cut: higher trade uncertainty, slower global growth and inflation remaining below 2%. However, since the meeting, the U.S.-China trade war has escalated and market sentiment has shown further jitters.
