Commentary

Fed cuts won't be good for markets, but low rates will

Last week's Federal Reserve meeting signalled that the US central bank is becoming increasingly concerned about the global economy and might soon cut official interest rates. PHOTO: AFP
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The clear slowdown in global manufacturing activity over the past 18 months - which started in China in mid-2017, spread to Europe early last year and has now hit the United States - has seen a marked shift in expectations for central banks.

Most importantly, last week's Federal Reserve meeting signalled that the US central bank is becoming increasingly concerned about the global economy and might soon cut official interest rates.

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A version of this article appeared in the print edition of The Straits Times on June 24, 2019, with the headline Fed cuts won't be good for markets, but low rates will. Subscribe