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With rate cut likely, market wonders how low Fed will go


NEW YORK (Reuters) - With U.S.-China trade tensions roiling markets, investors are counting on support for stocks coming from a Federal Reserve willing to keep cutting interest rates to help the U.S. economy avoid a severe downturn.

A quarter-point rate reduction is widely expected when the Fed issues its next policy statement on Wednesday, which would be the central bank’s second such cut after lowering rates in July for the first time since 2008. That puts the greater focus on clues about how much further the Fed will go.

“If the Fed gives forward guidance that suggests ...


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