US Stocks struggled for traction on Wednesday as market participants were concerned about the future path of interest rates, amid a strong set of corporate earnings reports.
But the direction of travel in PCE has changed, and that is what matters. they have given up on their 2% target I believe, but will never admit it, at least not anytime soon.
I think that is very possible, although I am becoming of the belief it will be in September. my fear is that if they cut too soon, we could see the dollar swoon, commodities rock and bonds get hammered as the market assumes they no longer care about inflation. they have put themselves in a tight spot
But the direction of travel in PCE has changed, and that is what matters. they have given up on their 2% target I believe, but will never admit it, at least not anytime soon.
Via a combination of Politics, the Data, the Calendar, and Hubris (human ego) the FED seems to be boxed in.
Could the most likely scenario be “one and done” until the election?
I think that is very possible, although I am becoming of the belief it will be in September. my fear is that if they cut too soon, we could see the dollar swoon, commodities rock and bonds get hammered as the market assumes they no longer care about inflation. they have put themselves in a tight spot