US:
The Fed hiked by 25 bps as expected and kept everything unchanged.
Fed Chair Powell reaffirmed their data dependency and kept all the options on the table.
The US economic data keeps on surprising to the upside, but inflation expectations and CPI readings continue to show disinflation with the last two Core CPI M/M figures coming in at 0.16%.
The US PMIs missed expectations across the board last week, while the US Jobless Claims remained solid.
Fed Chair Powell’s speech at the Jackson Hole Symposium was mostly in line with what he said previously but he stressed on the need to be careful going forward and that continued strength in the labour market may require further rate hikes.
At the moment, the market doesn’t expect another hike from the Fed, but the next NFP and CPI data will be crucial to confirm or change this view.
The Fed hiked by 25 bps as expected and kept everything unchanged.
Fed Chair Powell reaffirmed their data dependency and kept all the options on the table.
The US economic data keeps on surprising to the upside, but inflation expectations and CPI readings continue to show disinflation with the last two Core CPI M/M figures coming in at 0.16%.
The US PMIs missed expectations across the board last week, while the US Jobless Claims remained solid.
Fed Chair Powell’s speech at the Jackson Hole Symposium was mostly in line with what he said previously but he stressed on the need to be careful going forward and that continued strength in the labour market may require further rate hikes.
At the moment, the market doesn’t expect another hike from the Fed, but the next NFP and CPI data will be crucial to confirm or change this view.