- There’s a lot of optimism on a soft landing
- But there is a concern that inflation could pick up
- There is also a concern the Fed may also be the obstacle to the soft landing pushing rated too high and leading to slower growth
- Next week we will likely see a mild inflation reading
- it is impossible to tell whether the Fed will keep rates higher for longer or cut rates sooner
- The market and the Fed are now on the same side.
- The Fed want to use the interest rate tool to be the primary weapon (not quantitative tightening).
This article was written by Greg Michalowski at www.forexlive.com. Source