3 to 9 June: President Trump might just get his coveted rate cut soon

It very much looks like the market has made up its mind that the Fed funds rate will be reduced by 25bp at the end of July. The broad market came to this conclusion after a series of weaker-than-expected macro data releases. In our view, macro data in the US continue to signal solid growth ahead, which would not call for easing by the Fed in normal times. However, we do not live in normal times, as we live in an era, where the US President’s approach to economic policymaking disrupts global business and investor sentiment. If such deep concerns are left unaddressed by prudent policymakers (i.e. the Federal Reserve), they can easily become a self-fulfilling prophecy and lead to a downturn in economic activity. Consequently, both the Fed and the market will need to just Powell through (please, excuse the pun).

View All Global Market Updates

Subscribe to ourGlobal Market Updates

Error: Contact form not found.