The Federal Reserve (Fed) has begun its two-day long meeting on monetary policy in which it could apply a new interest rate cut in the face of fears of economic slowdown and the insistent pressure from President Donald Trump.

The central bank will issue its expected statement this Wednesday at 14.00 local time (18.00 GMT) and, subsequently, its president, Jerome Powell, will offer a press conference to explain the decision.

The Fed will also present its new macroeconomic forecasts.
Interest rates are currently between 2% and 2.25%, after the decrease in the price of money decreed at their meeting at the end of July.

Trump, for its part, has continued its lobbying campaign by urging the Fed’s “idiots” to cut “interest rates to zero or less”.

Markets point to the possibility of a further cut in interest rates amid concerns about a possible prolonged slowdown motivated mainly by uncertainty about global trade policy and weakening global demand.

“In the context of uncertainty, the Fed is likely to focus more on the global risks ahead than on the current data flows which, for the time being, on the domestic front, remain decent,” said Gilles Moëc, chief economist at AXA Investment Managers, in a note to clients.

The July cut was the first in over a decade, as the previous one came just after the 2008 financial crisis.

Money value in the country is the highest among the G7 economies, and for example the European Central Bank (ECB) and the Bank of Japan keep interest rates on negative territory below zero.

The national economy advanced at an annual rate of 2% in the second quarter of 2019, according to the first calculation of the evolution of gross domestic product (GDP) in that period, a sign of slowing after having recorded 3.1% in the first quarter.

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