Analysts at Bank of America are not expecting clarity on the Federal Reserve’s rate path ahead from the Summary of Economic Projections (SEthat’ll be published on Wednesday alongside the rate cut decision.
Nor are they expecting much guidance from Federal Reserve Chair Powell’s pres conference.
BoA say that there is much uncertainty over the outlook and thus the Fed will remain in data watching mode.
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Meanwhile, chatter and pricing of a 50bp FOMC rate cut continues, with a weaker US dollar here in Asia reflecting this again today (EUR, GBP, and JPY all rising from earlier).
As an aside, in a separate piece BoA said there are while there is chatter that the short USD trade has become crowded their data doesn’t support this.