IEI - Fed's Powell Signals A Willingness To Cut Rates But More Progress Is Required
2024-07-09 12:59:00 ET
Summary
- Progress appears to being made on the Fed’s aspiration of moving the economy into better balance and thus bringing inflation down towards the 2% target.
- Two-way risks are also increasingly being acknowledged and if the data moves in the direction we expect the potential of a September interest rate cut in the US will build further.
- If the data comes in as we project, we suspect that the Jackson Hole symposium in late August will be used as the venue to give the market the clearest indication on impending policy loosening.
Economy remains robust, but some progress has been made
In Federal Reserve Chair Jerome Powell's written testimony on monetary policy to the US Senate, he talks a little more of two-way risk, but while the Fed is open to the possibility of rate cuts at some point, he emphasises that the data needs to be there to justify it....
Fed's Powell Signals A Willingness To Cut Rates, But More Progress Is Required