Press comment: Despite one and done rate cut, Fed must keep further reductions on the table
If you are covering the Federal Reserve’s decision to cut interest rates, please find below commentary from Hinesh Patel, portfolio manager at Quilter Investors:
“Following this rate cut the Federal Reserve has signalled a pause, awaiting the development of future macroeconomic data before deciding on further interest rate policy adjustments. In our view, the Fed will struggle to meet their dual-objective of full-employment and inflation-target over the medium-term, meaning further rate cuts must remain on the table, despite what Chairman Powell would rather do.”
“Underlying consumer surveys do not paint a rosier outlook either and as seen in today’s GDP release the price index is moving lower. As concerns persist for the global economy, the Fed must make sure it doesn’t make the same mistakes and act too late on interest rates and be willing to provide the stimulus required to keep this cycle going.”
Notes to Editors:
About Quilter plc:
Quilter Investors is part of Quilter plc. It provides multi-asset investment solutions designed for advised clients in the UK and internationally and manages £20.3 billion on behalf of its investors (as at 30 September 2019).
Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.
Quilter plc oversees £118.7 billion in investments (as at 30 September 2019).
It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.
The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.
Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.
Wealth Platforms includes Old Mutual Wealth UK platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.
The Quilter plc businesses are being re-branded as follows:
- Quilter Financial Planning (previously Intrinsic)
- Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
- Charles Derby Group (becoming Quilter Financial Advisers)
- Quilter Financial Adviser School
- Quilter Cheviot
- Quilter Investors
- Old Mutual Wealth (becoming Quilter Wealth Solutions in 2020)
- Old Mutual International (becoming Quilter International in 2020)
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