Deutsche Bank expert: the Fed may again reduce key rate by mid-yea

The US Federal Reserve System May Downgrade Again key rate, according to Deutsche Bank expert Stuart Sparks. The likelihood that the regulator will have to take this step is increases as he plans to revise the way inflation targeting towards easing. It is reported by Bloomberg agency. If the Fed decides to cut the rate, then it will happen in the middle of the year, predicts Sparks. An appropriate incentive would be the regulator's desire to maintain inflation near the 2% level, and also confirm your decision to switch to a softer inflation targeting. He announced the latter at the end of 2018 of the year. According to Sparks, the Fed will have to take concrete steps to demonstrate the reality of these plans - just words not enough. The current strengthening of the dollar prevents the Fed from raising inflation. A decrease in the rate would make it possible to offset the effect of the growth of its exchange rate and to achieve greater stability in the issue of inflation, which would strengthen market confidence.