I posted earlier on Citi dropping its call for a 50bp rate cut next week to 25 bp. Analysts there do expect 50bp in November and December though:
Citi are forecasting two 50bp interest rate cuts from the US Federal Reserve
JP Morgan are sticking to its forecast for a 50bp rate cut next week though (announcement due September 18):
CPI report may incline some FOMC members towards a 25bp cutwe still see a compelling case for a 50bp move
JPM cite:
the shift in focus towards the weakening in the labor market
At JPM Asset Management, though, the view is for a 25 bp ratecut next week:
“Inflation has now cooled to room temperature, there is really not a significant inflation problem”the CPI result “does not call for drastic Fed action and I would be happy to see 25 basis points next week”
This article was written by Eamonn Sheridan at www.forexlive.com.
