A note from Bank of America with their outlook for the Federal Open Market Committee (FOMC).
- We maintain our view on a December cut based on trends in inflation
But. they add:
- Risks are tilting towards an earlier cut
- net softness in the jobs report should keep expectations of a cut this year in market pricing and should keep September live
- labor market continues to cool
- we see the activity and employment data as confirming a cooling economy and one that will lead the Fed to begin a gradual rate cut cycle later this year
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As a heads up, Federal Reserve Chair Powell is speaking Tuesday:
- Federal Reserve Chair Powell is speaking on Tuesday
- How much more confident will Powell be on inflation?
This article was written by Eamonn Sheridan at www.forexlive.com. Source