ECONOMIC WEEK AHEAD: September 15 - 19

Central banks take the spotlight this week as monetary policymakers from Washington to Tokyo cut to the chase on the balance of economic risks. Though the Federal Reserve's two-day meeting (Tue-Wed) is the main event, rate decisions by the Bank of Canada (Wed), the Bank of England (Thu), and the Bank of Japan (Fri) may reveal much about the degree to which US tariffs are disrupting economies around the world. The same goes for rate calls in Brazil, Indonesia, Norway, and Taiwan.

There's little doubt in financial markets that the Federal Open Market Committee (FOMC) will cut the federal funds rate by 25 basis points on September 17. And odds are there will be no dissenting votes this time, as weaker employment data give Fed Chairman Jerome Powell economic cover to make President Donald Trump’s day. Though Trump wants a bigger move, we remain convinced that a 50-basis-point cut is unlikely at this time.