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
Federal Reserve Chair Powell to speak at 10am US Eastern time on August 23Bank of America on Powell speaking at Jackson Hole – to keep aggressive easing option openNext week doesn’t start until Thursday
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Not the usual version:
This article was written by Eamonn Sheridan at www.forexlive.com.
