JPMorgan chair of global research Joyce Chang, spoke on Bloomberg TV Thursdauy. Says despite the strong retail sales report on in the US she still sees the Federal Open Market Committee (FOMC) cutting rates by 100bp over the course of the rest of this year.
- the path is clearer now for the next 6 months
- disinflation trends, employment trends means the Fed feels more confident being aggressive now
- expect messaging on this at Jackson Hole
Adds that even with 100bp of rate cuts the Fed is still restrictive:
- policy is currently set for a meaningfully higher inflation rate & and a meaningfully lower unemployment rate
- but those two measures have now moved
This article was written by Eamonn Sheridan at www.forexlive.com. Source