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)
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We’ll get more clues this week when Federal Reserve Chair Powell speaks at Jackson Hole
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Not the usual version:
This article was written by Eamonn Sheridan at www.forexlive.com. Source