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A Fed Cut Rests On Three Pillars
A September Fed cut appears increasingly likely, with disinflationary progress continuing, cracks beginning to emerge in the labour market, and the relative policy stance tightening further. Risk appetite, hence, should remain firm over the medium-term, with the path of least resistance for equities continuing to lead to the upside. The case for the FOMC to deliver a rate cut, sooner rather than later, continues to grow, resting on three main pillars: Increased disinflation confidence Cracks emerging in the labour market A continued rise in the real fed funds rate Let’s take each in turn. On the inflation side of ... (full story)