Tuesday's retail sales report for August indicates that the U.S. economy is doing pretty well, but the Federal Reserve is still expected to cut rates on Wednesday to avoid making the same mistakes as one of its predecessors, an economist says.
"If the Fed doesn't initiate its easing cycle with 50-basis points surely a 25-basis point move will be enveloped by a dovish tone and offers the Fed the flexibility and gradualism in the event inflation remains even slightly elevated," saidQuincy Krosby,chief global strategistfor LPL Financial.
"Make no mistake about it, Chair Powell doesn...
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