Free Trial

MNI: Fed Seen Sticking To 25BP Cut In Sept Post-CPI- Ex-Staff

MNI speaks to ex-Fed staffers on the rate outlook after July inflation reports.

MNI (WASHINGTON) - Federal Reserve policymakers are likely to coalesce around a quarter point interest rate reduction at their meeting next month barring more unexpectedly weak jobs data, despite market pricing showing roughly even odds of a larger half-point move, former Fed staffers told MNI Wednesday. 

Investors seized on a weaker-than-expected July jobs report, especially a spike in the U.S. jobless rate to 4.3%, to extrapolate a more aggressive start to the Fed’s rate cutting cycle. Still, policymakers have so far not explicitly committed to a 25 basis-point cut in September, much less a 50bp one.

Keep reading...Show less
625 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

MNI (WASHINGTON) - Federal Reserve policymakers are likely to coalesce around a quarter point interest rate reduction at their meeting next month barring more unexpectedly weak jobs data, despite market pricing showing roughly even odds of a larger half-point move, former Fed staffers told MNI Wednesday. 

Investors seized on a weaker-than-expected July jobs report, especially a spike in the U.S. jobless rate to 4.3%, to extrapolate a more aggressive start to the Fed’s rate cutting cycle. Still, policymakers have so far not explicitly committed to a 25 basis-point cut in September, much less a 50bp one.

Keep reading...Show less