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Fed seen lowering U.S. rates by 25 bps late July: BAML

Kitco News

NEW YORK (Reuters) - The Federal Reserve will likely reduce key U.S. borrowing costs by a quarter point at its upcoming July 30-31 policy meeting with the chance of a 50 basis-point decrease, Bank of America Merrill Lynch analysts said on Wednesday.

The U.S. central bank would follow a possible July rate cut with two more at the Fed’s next two meetings in the aftermath of a perceived “dovish” testimony from Fed Chairman Jerome Powell before a House panel, the BAML analysts said.

Reporting by Richard Leong; Editing by Chizu Nomiyama

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