MNI Fed Review - July 2024: “Table” Is Set For September Cut
Jul-31 20:44By: Tim Cooper
EXECUTIVE SUMMARY:
- The immediate reaction to the FOMC’s July decision was slightly hawkish, with the Committee defying some expectations of revised forward guidance in the Statement that would strongly imply a September rate cut.
- But the language and tone of Chair Powell’s press conference provided sufficient dovish assurances that the bar to cuts in the near future is low, and he explicitly noted that easing "could be on the table as soon as September".
- The market impact by the conclusion of the meeting was a slight increase in implied rate cut expectations, with a September reduction seen as an even surer bet, and nearly 3 full cuts priced by year-end.
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