Unless just about everybody is wrong, the Federal Reserve will cut the fed funds target by 25-bps to a range of 4.0%-4.25% this week.
The Fed looks set to re-start rate cuts next week and could take the fed funds target rate down by as much as 150-bps by the middle of next year. However, we doubt rates...
The Fed has not cut rates so far this year but FOMC members forecast two rate cuts in 2025 at their June meeting and the market is priced for two cuts as well.
When the FED launched itself into its easing cycle with a large 50-bps rate cut in September, it left many surprised, including ourselves.
While the Fed rate cut has no surprise, the size of the reduction was larger than expected, and the Fed’s explanation for the larger-than-anticipated rate cut was...
Last week’s US payroll data was somewhat mixed but, on balance, seemed to tip the debate about 25-bps or 50-bps, for the Fed’s first rate cut on September 18th towards...
As we count down to the July 31st FOMC meeting, there seem to be increasing calls for the Fed to do something.
Federal Reserve officials have said many times that they need to be confident that inflation is sustainably moving towards the 2% target in order to ease policy.
If you look at financial market pricing of future monetary policy for the Fed and ECB this year, you will see that the Fed is projected to cut rates just before the ECB.
There will always be some in the market eager to front-run what they feel will be a significant fall in the US dollar as the Fed gets into an easing cycle.
The prospect of rate cuts will come into view around the spring or summer of 2024, in the Standard Bank’s opinion.
Financial markets continue to price in the possibility of the Federal Reserve starting to cut rates before the end of next year.
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