Summary:
Investors believe the FOMC will maintain interest rates this month. They anticipate a 100 bps cut in 2024, raising doubts about its likelihood.
The Fed's Dec meeting
14/12/2023 (Thu) 03:00
Previous (Aug): 5.50% | Forecast: 5.50%
Investors are convinced that the FOMC will once again opt not to raise interest rates at its upcoming meeting this month. They have priced in rate cuts of 100 bps for 2024, which is questionable.
Powell confronts a mixed economic picture. While the labour market is resilient and consumer spending is solid, there are signs of slower growth and, in turn, lower inflation.
He is expected to reiterate that it is still premature to discuss policy shift as inflation remains well above the Fed’s target of 2%. But investors’ view could prove hard to alter at this point.
EUR/GBP rises above 0.8500 as soft UK data boosts BoE rate cut bets, while hawkish ECB remarks provide support for the euro.
2025-06-13
As the decline of US dollar hegemony intensifies, US-China trade tensions ease but tariffs stay high, raising global economic risks.
2025-06-13
London's FTSE 100 hit an all-time high on Thursday, led by energy shares, but geopolitical concerns limited further gains compared to European peers.
2025-06-13
