July 25, 2019 / 4:48 PM / a month ago

Barclays sees two dissenters if Fed cuts rates next week

The logo of Barclays bank is seen on glass lamps outside of a branch of the bank in the City of London financial district in London September 4, 2017. REUTERS/Toby Melville

NEW YORK (Reuters) - Two Federal Reserves may express their dissent next week if the Federal Reserve decides to lower key U.S. interest rates for the first time in a decade, which traders are betting it will do, Barclays U.S. economists said on Thursday.

Kansas City Fed President Esther George and Boston Fed chief Eric Rosengren have signaled they do not support insurance rate-cuts in the wake of a recent spate of stronger-than-forecast data on employment and inflation in June. They are also concerned that rate cuts when the economy is still expanding may increase risks to financial stability.

“Both appear to favor a ‘wait-and-see’ approach in evaluating risks to the outlook,” the Barclays economists wrote in a research note.

Reporting by Richard Leong; Editing by Chizu Nomiyama

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