Top of the Morning: FOMC takeaways & US economic update
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Andrew Dubinsky, Senior US Economist, joins to reflect on this week’s FOMC meeting and the likely final press conference held by Chairman Jerome Powell. We also discuss what a Kevin Warsh-led Fed might look like, along with outline expectations for monetary policy through the bal
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4 itemsTop of the Morning: FOMC takeaways & US economic update
Top of the Morning: FOMC reflections & US economic update
The recent FOMC meeting underscored a gradual approach from the Federal Reserve concerning monetary policy adjustments, with a clear divergence between improving economic conditions and inflation concerns. Per the full note from UBS, economist Andrew Dubinsky emphasized that although the Fed's decision to hold rates steady was anticipated, the constructive outlook on economic growth set the stage for future gradual policy recalibrations. This forward guidance aligns with our view that any tightening will be cautious and well-telegraphed to avoid market volatility, as shown by the Fed’s nuanced changes in their statements. Observing current economic growth at robust levels, the market will remain sensitive to inflation data as a catalyst for future shifts in policy direction.