Trouble ahead in the US – interest rates have further to fall

Interest rates have further to fall on both sides of the Atlantic if you read the runes of what the central bankers are saying – and not saying.

In the US, the Federal Reserve cut interest rates by 25 basis points on Wednesday for the second time this year while the Bank of England kept rates on hold at today’s meeting.

The Fed cut was not big enough for President Trump who immediately tweeted that: “[Fed chairman] Jay Powell and the Federal Reserve Fail Again. No “guts,” no sense, no vision! A terrible communicator!”