The FOMC decided to keep the target range for the federal funds rate unchanged at 5.25-5.50% as widely predicted. It is still anticipated that there will be three rate cuts this year and asset prices acted favourably - S&P closed up 1% at 5224, Cable bounced off the support levels and opens close to 1.28, Bitcoin is at 67,000, West Texas Intermediate crude rose 0.6% to $81.79 a barrel and Gold is at $2203 an ounce. In the press conference Powell interpreted the recent overshoot in inflation data as “bumps in the road.” He stressed that an unexpected weakening of the labour market could also be a reason to cut and now we have to we have to sit and wait, personally I think the November Elections will be the bigger bump.
As for today we have the BOE, after yesterday's slightly better set of inflation data we are expecting rates to be unchanged at 5.25% and the chances of a 3 way split minimised. In a speech from Rachel Reeves, the Shadow Chancellor of the Exchequer the next Labour government will embrace industrial policy to ensure a boom in investment spending but will this be inflationary. In a similar vain to the US, politics looks to be the stumbling block.
Elsewhere today we see Nike and FedEx earnings, UK public borrowing, European PMIs, US existing home sales, the Philly Fed, and weekly initial claims. Have a good day
**For professional investors only** Any opinions, news, research, analyses, prices, or other information contained in this blog is provided as general market commentary and does not constitute (and should not be construed as containing) investment advice or an investment recommendation, or an offer of, or solicitation for, a transaction in any financial instrument. Some of this information may have been provided by third-party sources and, although believed to be reliable, it has not been independently verified and its accuracy or completeness cannot be guaranteed. No representation or warranty, expressed or implied, is made or given by or on behalf of iSAM Securities or its directors or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this blog, and no responsibility or liability is accepted for any such information. As a result, any person acting on any information does so entirely at their own risk. iSAM Securities will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
