Will Fed Be Data-Dependent in Rates Decision? Jul 08, 2019 Factors Driving a Possible Fed Rate Cut in July By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group Why Does the Fed Need to Cut Rates? Fed rate increases since 2015 have been the lowest cumulatively in past 5 cycles Ballooning debt levels, subdued inflation have put a lid on even higher rates A debt-to-GDP ratio of 250% without low rates would be untenable for US Debt levels have soared due to wage growth lagging productivity gains Watch Video Data Watch Fed members divided on rate cuts ahead of July 30-31 FOMC meeting After a weak jobs report last month, will data on July 5 show a rebound? Inflation, retail sales, Q2 GDP data this month could influence Fed’s rate decision Disappointing data sets could seal the deal for a highly anticipated Fed rate cut Watch Video SEE MORE ANNOUNCEMENTS
