The market has been enthusiastic about an interest rate cut for almost two months.
That rally could continue after the Fed decision. Lower interest rates make borrowing cheaper for companies, which helps businesses bottom lines and increases the stock market. The expectations for a quarter-cut interest rate cut were slightly below 80% on Friday, while the remaining rare 20% predicted a cut of half-points.
But does the US economy need a boost?
The current economic growth cycle is ten years old, and with looser Fed policy, it can continue longer. America's economy is not exactly on the brink of collapse whether and by how much the Fed cuts prices. But in the first half of 201[ads1]9, the industry showed some weakness, and business investments were subdued when companies worried about developments on the trade front. On top of that, inflationary pressures have remained low.
With an interest rate cut – the first since 2008 – fully priced, the market's attention will turn to what's going on. With only a limited amount of financial data to assess the state of the economy between the Fed meetings in July and September, the central bank could hold back on a new rate cut until later this year. The market rates in yet another cut before the end of 2019.
Expectations of interest rate cuts in September, October and December are 100%, according to the CME FedWatch tool.
Another way the US economy can get a boost: To end the commercial war.
"If the tariffs are settled that will serve as a new interest rate cut in the form of juice to the market," said JJ Kinahan, chief strategist at TD Ameritrade.
Although the United States and China have agreed on a Customs Weapon, the trade battle remains unresolved. It weighs on business confidence and the amount companies invest.
2. Apple Revenue: Apple will report quarterly earnings on Tuesday, and they hope to prove to investors that they can move beyond China issues.
GE will report on income Wednesday.
4. Job Report: The US Labor Statistics Agency will publish its July report on Friday.
Economists expect the US economy to bring in 160,000 jobs in July, and they predict that unemployment fell to 3.6%.
Tuesday – Apple , ) Mondelez () Under Armor ( and ] Procter & Gamble ( earnings reports. )
Wednesday – Fed rate decision; GE, Occidental Petroleum () Molson Coors ( and ) Qualcomm  ( revenue reports )
Thursday – General Motors () Dunkin & # 39; (
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