Fed now on prolonged hold

We expect economic growth to slow over the coming quarters, but the fading downside risks from the global backdrop and trade policy, together with new, less dovish language from the Fed means we are no longer forecasting a final 25bp rate cut. We now anticipate that the fed funds rate will remain on hold at 1.50-1.75% for the foreseeable future, as economic growth drifts back up to 2% by the end of 2020 and inflation remains close to target.