Slowly but surely the interest-rate jigsaw puzzle is falling into place. Get ready for the much anticipated shift lower in the global monetary policy cycle by mid-year. Where the Federal Reserve steers, the rest tend to follow — central banks may be nominally independent of governments, but they’re somewhat less independent of each other — making it likely the three main monetary institutions will move in lockstep.

Fed Chair Jerome Powell made clear in his Congressional testimony last week that with inflation heading towards its 2% target, rates can soon be lowered. February’s nonfarm payrolls report last week continued the trend of slightly softer job growth and weakening earnings. Powell doesn't necessarily require inflation data to improve to ease, just for it not to worsen. He's becoming more confident that the Fed is "not far" from finally pulling the cut trigger. These conditions ought to be fully in place by its June 12 meeting.

QOSHE - Rate-Cut Bets See June as the Kindest Month - Marcus Ashworth
menu_open
Columnists Actual . Favourites . Archive
We use cookies to provide some features and experiences in QOSHE

More information  .  Close
Aa Aa Aa
- A +

Rate-Cut Bets See June as the Kindest Month

2 3
12.03.2024

Slowly but surely the interest-rate jigsaw puzzle is falling into place. Get ready for the much anticipated shift lower in the global monetary policy cycle by mid-year. Where the Federal Reserve steers, the rest tend to follow — central........

© Bloomberg

Get it on Google Play