VIEW: Nordea expect "the Fed to cut its.........>

FED: VIEW: Nordea expect "the Fed to cut its policy rates in June (previously

March), as we believe the labour market will weaken in tandem with the economic

slowdown and as financial conditions might otherwise tighten when liquidity

measures are tapered."

- Risks: "The review of the monetary policy strategy will be concluded during

the summer, and clear, simple communication will be part of the review. In that

sense, the bar to mixing near-term policy considerations into the medium-term

framework communication might be slightly higher for the FOMC meetings on 9-10

June and 28-29 July. The labour market might continue to surprise positively!

The historical relationship between GDP growth and nonfarm payrolls pointed to

significantly weaker payrolls increases in the second half of 2019 than what was

realised. If job growth continues to surprise positively in the first half of

this year, consumer spending will hold up and the spill-over from last year's

trade war-related manufacturing weakness to the service sector will be modest

and the Fed will likely continue to see the current level of policy rates as

appropriate for a while longer."