Westpac point out that while major downward revisions to US payrolls estimates have injected a little more urgency into the US situation over the last month, the pricing in of close to 250bps in cuts by this time next year in extreme:
- that sort of ‘shock and awe’ easing does not seem warranted
WPAC is looking for easing to be a bit more orderly, nominating 200bps of cuts:
- US labour market may be weaker than it appeared but the data suggests it is far from capitulating
- Markets are clearly struggling to work out what the policy path looks like for a central bank that is no longer fearful of inflation but still not overly concerned about weak growth
Ferd funds this century, so far.
This article was written by Eamonn Sheridan at www.forexlive.com. Source