Even as job growth recovers, Royston Carr Asset Management analysts say the Fed could still be prompted to cut interest rates.
Online PR News – 08-August-2019 – Taipei, Taiwan – After disappointing figures in May, US job growth recovered last month. Royston Carr Asset Management analysts believe this could indicate that the significant slowdown in May was not a reliable indication of economic health.
Royston Carr Asset Management analysts say that even moderate salary gains and the growing evidence that the US economy is slowing may still prompt the US Federal Reserve to lower borrowing costs as soon as this month.
In June, the Fed indicated that it may consider lowering interest rates as early as this month due to low inflation and increasing risks to the US economy.
The trade dispute between the US and China has shown little sign of being resolved in the near future although the leaders of the two countries agreed to a trade truce last week at the G20 summit in Japan. But US President Donald Trump has stated that he is not rushing to strike a deal that would be unsatisfactory for the US.
The bitter trade war has damaged US business confidence, causing a drop in equipment spending and manufacturing.
After a record decade of expansion, the US economy appears to be slowing as the effect of last year's stimulus from substantial tax cuts and greater government spending starts to wane.