A stock market rout and slower economic growth could soon lead to lower borrowing costs. Here's what experts think the Fed will do with interest rates.
Renewed concerns about the U.S. economy could have a major impact on Americans that go well beyond this week's free fall in stocks. Experts say the recent slide in financial markets, triggered by mounting evidence that the economy is bogging down, raises the odds that the Federal Reserve will aggressively ease monetary policy starting next month in a bid to avert a severe downturn.
But the August 2 jobs report was much weaker than expected, sparking fears the Fed has been tardy in lowering rates and spurring some investors to call for for an emergency cut. That's highly unlikely, many economists say. The Fed typically reserves emergency action for when it perceives broader risks to the financial system or to the economy, such as the pandemic.
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