The daily business briefing: July 29, 2019

Fed prepares for meeting expected to end with first rate cut in a decade, The Lion King continues to dominate the box office, and more

The Lion King premiere
(Image credit: Alberto E. Rodriguez/Getty Images for Disney)

1. Fed expected to cut interest rates for 1st time in decade

The Federal Reserve is preparing for the Tuesday start of a two-day meeting that is expected to end with the central bank's first interest rate cut in more than a decade. Fed leaders recently stoked speculation that they could be gearing up to a big cut of 50 basis points to boost the economy and keep its record-long expansion from sputtering, but recent strong economic data cooled those expectations. "The market is pricing in a 25 basis point cut," said Quincy Krosby, chief market strategist with Prudential Financial. "We already know of two Fed presidents who don't think we need it, so there's obviously going to be a discussion, with the strong data." A Friday report showed that GDP grew by a better-than-expected 2.1 percent in the second quarter, although trade tensions appeared to be taking a toll.

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