July 29, 2024 at 11:40PM
Snippet summary from BMO on opportunities ahead for the Federal Reserve to signal a September rate cut:
the verdict is still out on the amount of signalling Powell is willing to provide on Wednesday
there is enough uncertainty that we suspect there will be meaningful and tangible price action – most likely on the constructive side
even if Powell stops shy of convincing the market that the Committee has pencilled in a cut for September, the Fed also has the FOMC Minutes release to convey the message of ‘cuts are coming’.
Let us not forget the Aug 22-24 Jackson Hole conference about the effectiveness of policy and its implementation – an especially topical subject at the moment. It has also been a venue that has been used to offer a fuller explanation of a shifting policy outlook – the timing this year suggests this could once again be the case.
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On Wednesday, July 31, 2024 we get the Federal Open Market Committee (FOMC) statement at 2pm US Eastern time, followed by Powell’s press conference a half hour later.
Earlier:
Deutsche Bank on the Fed – “market has jumped the gun on a dovish pivot”
UBS says a Federal Reserve policy pivot is “on the horizon”
Timiraos: Fed cut unlikely on Wednesday but officials wary of waiting too long
Newsquawk Week Ahead: Highlights include FOMC, BoJ, NFP, BoE, ISM Mfg. PMI and OPEC+ JMMC
This article was written by Eamonn Sheridan at www.forexlive.com.
