I think the change in expectations to the Fed outlook reflects the sort of scramble and divisive uncertainty in markets at the moment. While some are thinking the Fed will cut more, there are some thinking that they will cut less or won’t all this year. Nomura was in the former camp but they are now penciling in one rate cut to be squeezed in during the December FOMC meeting.
If anything, all of this shows what a tough situation it is to be trying to predict all the moving parts in relation to Trump’s trade policies and tariffs.
This article was written by Justin Low at www.forexlive.com.
