The latest cut in interest rates will not be sufficient to prevent a severe recession in the US, according to Jamie Lewin, head of international asset allocation strategies at BNY Mellon Asset Management.
As predicted, the Federal Open Markets Committee yesterday cut the Target Federal Funds rate by 50bps to 1pc, in doing so, reducing its key policy rate to its lowest level since Q2 2004. Lewin said: "The looming spectre of a deep and synchronised global recession has prompted Chairman Bernanke to take decisive action designed to stimulate activity and restore confidence in financial markets. "However, given the loss of economic momentum we have already witnessed, the decision is unlikely to prevent the US economy from experiencing a growth recession during the coming quarters as severe...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
