FOMC preview: Fed to stay on hold after June’s hawkish shift
From the original
https://think.ing.com/articles/fomc-preview-fed-to-stay-on-hold-after-junes-hawkish-shift/
Related speeches
4 itemsFOMC Recap: Fed Holds, but Not Quite the “Hawkish Hold” Traders Expected - FOREX.com
Why we don’t think the Fed will hike rates
The desk believes the Federal Reserve is unlikely to hike rates based on the diverging perspectives within the FOMC and a favorable inflation outlook over the next year. Per the full note by James Knightley, the Fed's dual mandate of maximizing employment and maintaining price stability requires a cautious approach, especially given the current softness in job creation and the housing market. Despite a hawkish tone from half of the FOMC members, the remaining members' skepticism coupled with improving inflation metrics supports our stance for a lengthy pause in rate hikes. The consensus within the market is significantly swayed by these internal dynamics as investors currently anticipate a 25 basis point hike by October 2026 but our position emerges firmly on the side of inaction.