Here’s another forecast for a September Federal Open Market Committee (FOMC) rate cut

Morningstar is an American financial services firm. From Morningstar chief US economist Preston Caldwell:

  • The CPI report “provides further support for aggressive Fed rate cuts beginning in September.”
  • he sees a 25bps cut to start, which will take Fed Funds to 5.00-5.25%
  • “While the rise in the unemployment rate is flashing alarm signs, other labor market indicators look more benign,”
  • “Not to mention, economic activity continues to expand at a solid pace for now, although we expect a deceleration over the next year.”
  • Further out he says “optimal monetary policy calls for a hefty reduction in the federal-funds rate in short order.”

(ie continued cuts)

We’ll get more clues this week when Federal Reserve Chair Powell speaks at Jackson Hole

Not the usual version:

This article was written by Eamonn Sheridan at www.forexlive.com. Source