Will US Fed cut rates for the first time since the global financial crisis?

The Federal Open Market Committee (FOMC) of the US Federal Reserve will meet later this week (July 30-31) to take a call on policy interest rates. Financial markets are expecting the Fed to cut interest rates by 25 basis points. If it happens, this will be the first cut since the aftermath of the global financial crisis of 2008-2009, as Chart 1 shows. 

Here is a brief summary of various US macro-economic indicators, which are likely to influence the Fed’s decision. Firstly, 10-year government bonds are yielding less than short-term policy rates. Further, the US economy has been expanding slowly