Economists’ Survey: Fed to Cut Rates Again

Oct 25, 2019

The will-they-or-won’t-they guessing game involving the Federal Reserve’s rate policy is attracting more bets on the “they will” side, according to a new poll of 40 economists conducted by Bloomberg.

In this poll, 85 percent of respondents predicted the central bank’s policymaking Federal Open Market Committee will reduce rates by a quarter percentage point when it concludes its next two-day meeting on Oct. 30. This would bring the target range for the Fed’s benchmark rate to 1.5 percent to 1.75 percent. However, 56 percent of respondents also believed this will be last rate cut for some time–the Fed cut rates in July and September.

“It might well be a hawkish cut as Powell will likely signal some resistance to cut rates more,” said Thomas Costerg, senior U.S. economist at Pictet Wealth Management in Geneva, referring to Federal Reserve Chairman Jerome Powell.
Still, some economists feel another cut is possible.

“China and the U.S. haven’t come to an agreement, Europe is still slow and weak, and Brexit isn’t done,” said Brian Wesbury, chief economist at First Trust Portfolios. “They can’t put a floor under this, because that would argue they’ve already done enough to fix the uncertainty, or that the uncertainty is gone, and it’s not gone.”

One person expecting a rate cut is President Trump, who took to Twitter yesterday with another slam at the central bank. “The Federal Reserve is derelict in its duties if it doesn’t lower the Rate and even, ideally, stimulate,” he tweeted. “Take a look around the World at our competitors. Germany and others are actually GETTING PAID to borrow money. Fed was way too fast to raise, and way too slow to cut!”

About the author

Phil Hall

Link copied

Published

Oct 25, 2019

Industry News

Newfi And Addy AI Announce Partnership

Newfi and Addy AI today announced a collaboration focused on the continued evolution of artificial intelligence in mortgage lending

Newfi and Addy AI today announced a collaboration focused on the continued evolution of artificial intelligence in mortgage lending.Newfi has built innovative lending products and a modern approach to the mortgage market. As the industry evolves, the company continues to exp...

Analysis and Data

Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Homebuyers are putting less money down than they were a year ago, another sign that increased inventory and greater negotiating room are changing the purchase market.The typical down payment fell to $27,100 in the second quarter of 2026, the lowest second-quarter dollar amou...

Nov

Pasadena, CA

More from

Industry News

CHLA: More Freddie Mac MBS Buying Could Narrow Mortgage Spreads

Trade group estimates greater Freddie participation could compress spreads another 10 to 12 basis points as Fannie has taken the lead in GSE mortgage-bond buying

Industry News

Sep 23, 2026

Early Loan-Limit Race Splits Into Three Tiers

Lenders are now offering $845,000, $847,440, or $850,000 before FHFA sets the official 2027 limits

Industry News

Sep 23, 2026

Better, Garg Clash Over Claimed 46% Shareholder Support

Better disputes its former CEO’s preliminary consent count as the two sides trade accusations and an Oct. 2 target date approaches

C-Suite Strategies

Sep 23, 2026

Fannie Changes How Rent From A Former Home Counts

Fannie now prohibits leases for departing residences and permits market-analysis tools instead of Form 1007, creating a key documentation difference from Freddie Mac

Regulation and Compliance

Sep 22, 2026

MPF Expands Eligibility For Manufactured And Renovation Loans

The Mortgage Partnership Finance Program has expanded MPF Traditional eligibility for affordable loans, manufactured homes, renovations, and lender-funded assistance

Industry News

Sep 22, 2026