Fitch on the Fed – will need to see similar CPI results on the months ahead before cutting

July 12, 2024 at 01:58AM
A snippet from a note from Fitch following the US CPI data:

Sufficient confidence to begin cutting interest rates is getting closer

the Federal Reserve will likely want to see similar prints in August and September before pulling the trigger on that first rate cut

Other analysts are more convinced a cut is coming:

More on the JP Morgan September Fed rate cut call, if you can make any sense of it

Here’s another forecast for a September Federal Reserve rate cut

An argument I’ve pondered against a September cut is that with the election now seemingly a one-horse race, why cut in September when they could cut on November 7 and provide a gift to the new guy to keep him off their backs for a while? Too cynical?

This article was written by Eamonn Sheridan at www.forexlive.com.

Fitch on the Fed – will need to see similar CPI results on the months ahead before cutting