Investing.com - The New York Federal Reserve Bank cut its estimates on third- and fourth-quarter U.S. GDP following data this week showing weakness in retail sales, manufacturing and housing.
- The NY Fed cut its third-quarter estimate of GDP to an annualized 1.95% from 2.03%. Its fourth-quarter estimate dropped to 1.05% from 1.3%, the lowest since the end of August, when it began rolling out estimates for the final quarter.
- Negative surprises from retail sales, capacity utilization and housing data accounted for most of the decrease, the New York Fed said.
- The downbeat outlook comes as the Federal Reserve is widely expected to cut rates at the end of the month, with the odds of an October rate cut rising to nearly 90% from 70% last week, according to Investing.com’s Fed Rate Monitor Tool.