Ahead of Federal Reserve System Chair Powell to speak Wednesday US time (1400GMT it begins), Nat West:
A brief comment from Nat West (this via Reuters)
- odds favour of a 25 bps “insurance” cut
- Fed’s consideration of rate cuts is not only about growth but also about inflation, which remains well below target, and inflation expectations, which were breaking to the downside before the Fed signalled the likelihood of cuts
The NFP last Friday moved a 50bp cut off the table. Markets await remarks from Powell on the prospects for the 25bps remaining in contention.
Yes, don’t forget, at the same time: