Fed rate cut is coming, but corporate insiders still doubt it is necessary

The Federal Reserve Open Market Committee is widely expected to announce a rate cut after its two-day meeting this week ending Wednesday.

Chief financial officers of major corporations who responded to the third-quarter 2019 CNBC Global CFO Council survey believe a rate cut is coming, but they do not see a rate cut as being critical. Federal Reserve Board Chairman Jerome Powell reacts after the two-day meeting of the Federal Open Market Committee on interest-rate policy on June 13, 2018, when it raised its benchmark rate to 1.75% to 2%. If the Fed cuts this week, the rate will return to that level.its benchmark lending rate at the conclusion of its Federal Open Market Committee meeting, which will take place on Tuesday and Wednesday of this week.

The market expects it, and so do chief financial officers of major corporations surveyed by CNBC. But the CFOs are late to the rate-cutting party, and they still are not entirely sure more cuts are the right monetary policy. The Fed is expected to lower its benchmark overnight lending rate by a quarter point at this week's FOMC meeting. Traders in the fed funds futures market were hedging some bets ahead of the Fed announcement, but market expectations for a 25-basis-point rate cut were at 63.5%, according to the CME Group'sA majority of chief financial officers responding to the CNBC Global CFO Council third-quarter 2019 survey think the Fed will cut rates.

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