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Barclays sees two dissenters if Fed cuts rates next week

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Barclays sees two dissenters if Fed cuts rates next week
FILE PHOTO: The Federal Reserve Bank of Boston's President and CEO Eric S. Rosengren speaks in New York, April 17, 2013. REUTERS/Keith Bedford/File Photo   -   Copyright  Keith Bedford(Reuters)
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NEWYORK (Reuters) – Two Federal Reserves may express their dissent next week if the Federal Reserve decides to lower key U.S. interest rates for the first time in a decade, which traders are betting it will do, Barclays U.S. economists said on Thursday.

Kansas City Fed President Esther George and Boston Fed chief Eric Rosengren have signalled they do not support insurance rate-cuts in the wake of a recent spate of stronger-than-forecast data on employment and inflation in June. They are also concerned that rate cuts when the economy is still expanding may increase risks to financial stability.

“Both appear to favour a ‘wait-and-see’ approach in evaluating risks to the outlook,” the Barclays economists wrote in a research note.

(Reporting by Richard Leong; Editing by Chizu Nomiyama)

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