Federal Reserve: How to interpret the next interest rate cut

Synopsis: The Federal Reserve sounded dovish at its recent meeting, raising expectations for a rate cut as forecasts by markets since Q4 2018. Despite a strong economic outlook, markets expect a rate cut in July. This suggests that the U.S. economy will be much more affected by the trade war than previously expected and the Fed will seek to strike a delicate balance between strong economic data, communicating its response function and policy uncertainty.