As expected, the Federal Reserve lowered the overnight Fed Funds rate by 25 basis points (bps) from a range of 2%-2.25% to 1.75%-2%. Here are 9 quick takeaways from Dan North, Chief Economist of Euler Hermes North America.
The weakness in manufacturing was reflected in the ISM manufacturing survey, which slipped below the 50 level into contraction area at 49.1, the lowest level in almost four years. Seven of the ten components fell, and nine are now below 50 for the first time since the recession.
Fed Chair Powell last Friday indicated that the Fed would be ready to act if uncertainty over a trade war continued to weigh on the economy. The same day the trade war did indeed worsen as China and the U.S. both imposed new tariffs and exchanged heated words.
Since 1996, Dan North has been with Euler Hermes, the world’s oldest and largest credit insurance company. As the company’s chief economist for North America, he uses macroeconomic and quantitative analyses to help manage Euler Hermes’ risk portfolio of more than $250 billion in annual trade transactions within the region.
As one of the leading U.S. economists, Dan North has appeared on CNBC, Fox Business News, ABC News Now, France 24, and Bloomberg Radio and Television. He has been quoted by USA Today, Barron’s, Bloomberg Business Week, The Washington Post, Paris Le Monde, and The Wall Street Journal. After having predicted the 2008/2009 recession and its implications accurately, Dan North was ranked 4th on Bloomberg’s list of the 65 top economic forecasters in 2010.