Washington (AFP)
The US Central Bank (Fed) began Tuesday a two-day monetary meeting that it should conclude with a slight decline in interest rates, the second in two months.
"The Monetary Policy Committee (FOMC) began its meeting at 10:15 local (14H15 GMT) as planned," said Tuesday a spokeswoman for the Federal Reserve.
A large majority of financial players are banking on a further decline of a quarter of a percentage point in rates (0.25%) but their certainty has been shaken after the strikes against oil facilities in Saudi Arabia.
The resulting production shutdown pushed up oil prices, sowing doubt among investors who are now 36% to think that the Fed could leave rates unchanged, according to the evolution of futures products. CME Group.
Six weeks ago at the end of July, the Fed lowered the cost of credit by a quarter of a percentage point to a range of 2% to 2.25%.
This "insurance" gesture aimed to prevent the risks of a slowdown in the economy linked to trade tensions, but also to the weakening of the world economy.
Markets expect the Central Bank to do the same Wednesday, despite some division within the Monetary Committee (FOMC), two members had voted against the rate cut in July.
Following the release of the official FOMC statement, Fed Chairman Jerome Powell will hold a press conference at 1830 GMT.
The Fed will also release its quarterly economic outlook for growth, unemployment and inflation.
Almost daily, with raging tweets sometimes insulting, US President Donald Trump claims that the Central Bank drastically lowering its rates.
"Because of the Fed, the US is paying MUCH higher interest rates than other countries, they do not know how lucky they are that Jay Powell and the Fed have no idea what they are doing. ", thundered the president on Monday in a tweet. Reacting to the attacks on oil installations in Saudi Arabia over the weekend, Donald Trump added: "and now, in addition to the rest, the oil is affected." "A big drop in rates, Stimulus!", He said.
© 2019 AFP