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Deutsche Bank in a note out Monday argues.......>

FED
FED: Deutsche Bank in a note out Monday argues that announcing an
earlier-than-expected end to SOMA balance sheet unwind at the June or July
meetings would be a 'logical intermediate step' for the Fed in light of more
aggressive pricing of a rate cut cycle.
- DB cites 'timeliness' (balance sheet pause could give Fed more time to see how
data evolves before cutting rates), 'low-cost easing option' (maintains wide
scope for further easing), 'signalling effect' (shows Fed recognises current
risks), and 'pre-condition for cuts' (i.e. Fed doesn't want the balance sheet to
be working at cross-purposes with rates).

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