In a rush? Here’s the key takeaway
- The market has reacted to the FOMC statement and Powell press conference as if a rate cut in July is guaranteed. But it seems that while the Fed has opened the door how G20 and trade goes is likely the key to how soon rates are cut.
- That said. during the press conference though Powell did intimate that the current conditions are enough for a cut it is simply that FOMC members are waiting to see if there is persistence of the risks to the outlook.
- The key takeaway is that the Fed has marked itself to market and in saying – again during the press conference – that an ounce of prevention is worth a pound of cure Powell has signalled it is only a matter of time till rates start being cut in order to “SUSTAIN THE EXPANSION”.
Now, let’s dive in to this morning’s newsletter