Dovish testimony from Powell, 3 rate cuts on the way, starting with 25bps in July

Author: Eamonn Sheridan | Category: Central Banks

That's the expectation from Bank of America / Merrill Lynch for the FOMC after Fed Chair Powell's testimony on Wednesday 

Powell "delivered a dovish testimony"
  • "hinting strongly at an upcoming cut"
BoA ML:
  • expect a 25bp cut in July (31st)
  • and cuts thereafter at each of the following two meetings (September17-18 and October 29-30)
  • cumulative 75bp of easing
More from the note:
  • The Fed seems to be willing to dismiss the better data from the US and instead is focusing on the weaker global data.
  •  Indeed, when Powell was asked if the strong jobs report changed his views on cuts, he stated "no". 

ForexLive
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose