FX BANK FORECAST · COVERAGE
Aggregated year-end forecasts, scenario shifts, and curated analyst notes from 37 institutional desks. No promotion.
See how the Federal Reserve outlook moves the USD bank consensus across 37 desks
View Federal Reserve outlookFrom the original
https://think.ing.com/articles/cooling-us-inflation-points-to-fed-holding-steady/
The desk believes that recent cooling in US inflation, particularly following a disappointing July jobs report, will likely lead to the Federal Reserve maintaining its current interest rate policy for an extended period. Per the full note [source], July saw core inflation decline to an annualized rate of 2.5%, with 3M annualized core inflation dipping even lower to 1.6%. This shift reduces the urgency for hawkish moves from the Fed, especially as market participants brace for upcoming data releases and the Jackson Hole symposium later this month.