There is 100% expectation of a 25 bps Fed rate cut: Seth R Freeman

The market participants have indicated that there is 100% expectation of a 25 bps rate cut although some are hoping for 50 bps cut, says Seth R Freeman, Senior MD, GlassRatner Advisory. Excerpts from an interview with ETNOW.

The FOMC meet begins today but what are your expectations? Do you see them going ahead and cutting rates or would they hold on to it but there are commentaries even more dovish than what it is.
The market participants have indicated that there is 100% expectation of a 25 bps rate cut although some are hoping for 50 bps cut.

What do you think of the continued attack of US President Donald Trump on the Federal Reserve? Is that justified?
First of all, traditionally the Fed is non-political. Generally, the President of the United States does not put pressure on the Chairman of the Fed in the manner in which President Trump has. I do not believe the Fed would be responding to the tweets about Fed policy. Beyond that, the US President is not particularly known to be an academic economist. Putting in those factors, I think the Fed continues to be data driven and is not being responsive to Donald Trump.