With mounting economic data suggesting the US is headed for a slowdown, investors have ramped up their expectations of a rate cut at the Fed's Oct. 29-30 meeting, according to an Oct. 3rd article in The New York Times.
“Clearly the data have shifted the narrative for the market,” said Matthew Luzzetti, chief United States economist at Deutsche Bank. “The data in July and September were more mixed — it is now clear that a slowdown has taken hold.”
The Times points to surveys from the Institute for Supply Management and consumer confidence assessments, all of which show signs of weakening.
The Fed's last rate cut were meant to provide a cushion in the event that Trump's trade wars and economic weakening in Asia and Europe registered real impacts--both are proving to be problematic.