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MarketScape · 02.01.24

Looking for Greater Confidence

Fed Chair Jay Powell used his press conference this week to push against market expectations that rate cuts are just around the corner.
  • Markets & Economy
  • Liquidity
  • Central Banks
  • Monetary Policy
Key Points
What it is
We unpack the Fed’s latest policy statement that the market was too optimistic on the prospects of a rate cut as soon as the March FOMC meeting.
Why it matters
Chair Powell acknowledged the need to balance the risks of cutting rates too soon against the risks of waiting too long but noted that the FOMC still needs to see further progress on disinflation.
Where it's going
The Chair’s own words this week suggest that investors keen on the future direction of interest rates would do well to focus on inflation in the services sector.
Main Point

Inflation Remains the Key Data to Watch

With relatively good news on economic activity, and with inflation still running above the FOMC’s target, it’s no surprise that inflation remains the key data to watch.

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Antulio N. Bomfim

Head of Global Macro – Global Fixed Income

Antulio Bomfim, head of global macro for the global fixed income team, oversees interest rate strategy, systematic volatility, liquidity and monitoring of systemic risk globally. He is also responsible for the firm’s global liquidity management business.

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