Market / Economy

Here's why the Fed may be nervous about the US economy

Posted On: Jul 16, 2019   |   Posted By: Business Insider

Here's why the Fed may be nervous about the US economy

With the economy booming after a record stock market high and relatively good employment levels people have been asking why the Fed looks set to cut.
Investors have been expecting the rate cuts, with the stock market rallying.
Shipments have fallen for a seventh straight month, a sign the trade war with China is hammering trade.
The Fed may be watching the freight data.
View Markets Insider for more stories.
The stock market is hovering near records and unemployment is at a healthy 3.7%, yet the Fed looks set to cut rates as soon as this month. Why?
"There initially seems to be little reason for the Federal Reserve to be considering interest rate cuts, but a collapse in US freight traffic suggests the central bank may have cause to be nervous about the American economy after all," said said Russ Mould, investment director at AJ Bell.
Shipments fell for the seventh straight month - the worst slump since 2016, suggesting trade tensions with China are having an effect on movement of goods.
"Investors need to...

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