The US central bank looks to follow the European Central Bank and lowers interest rates next week by a quarter of a percentage point. Fed chairman Jerome Powell has made clear that he does not believe a US recession is likely, but he has acknowledged that the economic headwinds are intensifying.
"There are all these risks, and we are monitoring them very closely and we are implementing policies in a way that will deal with them," he said earlier this month.
"The domestically focused, consumer-oriented parts of the economy are catching on, but with inflation that looks unthreatening, the Federal Reserve has room to offer support to the economy," wrote analysts at ING, a Dutch bank. [1
9659004] Trump factor: US President Donald Trump has used his Twitter feed to keep the central bank press. "The Federal Reserve should get our interest rates down to zero, or less, and we should then start refinancing our debt," he tweeted last week.