There is a growing belief that the American Central Bank will intervene in September with an initial rate cut. RBC BlueBay’s Neil Sun highlights Jerome Powell’s “changing language”, while for abrdn’s James McCann the trend “depends on who sits in the White House”
The words of Jerome Powell after the summit of fed yesterday where, as expected, interest rates were kept unchanged, brought benefits to the Wall Street lists: the markets are examining the increase in the possibility of a reduction in September, due to the trend not only of inflation, but as well as and especially in the production of the US market. And that’s what analysts are highlighting today.
“SIGNIFICANT LANGUAGE CHANGES”
“The Fed acknowledged further progress on the inflation front and acknowledged the downward trend in the labor market, saying the unemployment rate has risen but remains low,” he pointed out. Neil SunBlueBay Portfolio Manager of RBC BlueBaywhere the American Central Bank seems to be moving toward a more balanced tone. “What attracts the attention of investors – he added – is the language changewhich led to attention on the ‘dangers on both sides’ of the Fed’s dual mandate”…
** This article was written by FinanceLounge