On Friday, the 15th of March 2019, US manufacturing data had revealed that the output had plunged for second straight months in February, alongside factory activity over New York State had been contracted to a two-year low, pointing towards a tormenting slowdown in US economy, although it had just been the first quarter of 2019.
The Friday’s (March 15th) US data had added further penetrations into the nation’s perilous economy despite a robust job market and underpinned the Fed’s patient stance over raising interest rates further this year.
Fed Officials are scheduled to meet on Next Tuesday and Wednesday (March 19th-March 20th), however, a rate hike does not seem to be an option by any means, given the release of a hateful of incendiary financial data, although, it had just been the first quarter of 2019.
Even, analysts were being quoted saying that there might not be another hike this year, considering the feckless outcome of US-China trade talk and a contumacious economic slowdown. Following the release of Friday’s (March 15th) data, chief economist at MUFG in New York, Chris Rupkey said, “The economy is spinning its wheels and not gaining any traction yet in this soft patch produced by trade wars and stock market turbulence and the government shutdown. Thank God Fed officials were smart enough to take their foot off the rate hikes accelerator”.