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BNY Mellon Push Back Fed Cut Call From March

FED
  • BNY Mellon push back their view on the first Fed rate cut, dropping their call for March easing in favour of the May 1st FOMC.
  • View change follows the "very impressive" US jobs data and Powell's appearance on 60 Minutes - however they still think it appropriate to cut rates in March due to continued expectation that core PCE will keep decelerating and meet Fed's requirement for inflation to move "sustainably" to 2%.
  • Our January Fed Review flagged that many banks were pushing back their rate cut call from March, but a number of standouts still looked for March easing: https://roar-assets-auto.rbl.ms/files/59780/FedRev...

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