Dallas Fed President Robert Kaplan said that the US is not yet heading into a “full-fledged rate cutting cycle”. He said “the debate we are having around the table is, there is a risk that slowing global growth and weak business investment” is moving beyond manufacturing and capex. On the other hand, “consumer is strong” and is expected to continue, even though it’s “fragile”.

Kaplan added, “We therefore took action in July and took action in September. I don’t view this as starting a full fledged rate cutting cycle … But it is appropriate to adjust the stance of monetary policy in a more limited, restrained way.”

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