JP Morgan Chief US Economist Feroli thinks a 50bps FOMC rate cut ‘the right thing to do’

JP Morgan’s Chief US Economist Michael Feroli on the US consumer:

• slower income growth could prove a headwind to consumer spending growth
• this has been the engine powering the economy in recent quarters
• policy is restrictive
• downside employment risks are growing
• upside inflation risks are ebbing

Recommends a 50bp Fed Funds rate cut:

• we still think cutting 50bp at the September meeting is the right thing to do

Adam prepared this. I swear the dude can read my mind.

This article was written by Eamonn Sheridan at www.forexlive.com.