Asia Stocks Gain, Dollar Sags As Fed Reinforces Rate Cut Expectations - Dollar Advisory Financial Services

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Friday, 19 July 2019

Asia Stocks Gain, Dollar Sags As Fed Reinforces Rate Cut Expectations

Asian stocks gained and the dollar sagged on Friday after a top Federal Reserve official all but cemented expectations of a U.S. interest rate cut later this month. New York Fed President John Williams said on Thursday that policymakers need to add stimulus early to deal with too-low inflation when interest rates are near zero and cannot wait for economic disaster to unfold, in a speech read as a strong argument in favor of quick action. The comments by Williams made it a virtual certainty the Fed would opt to cut interest rates by 25 basis points (bps) at its July 30-31 policy meeting and also fueled expectations of an even deeper 50 bp reduction.

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