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The Fed set to move faster to stave off recession risk
How quickly things can change. And here's why we've changed our minds on what the Fed will likely do next. Friday's US jobs report was a wake-up call. Our view had been that while economic growth was likely to slow in the near term in response to the uncertainty generated by President Trump's policy mix of trade tariffs, targeted spending cuts and immigration controls, the jobs market was looking resilient. Monetary policy was mildly restrictive, but in an environment where tariffs will push up prices, we doubted the Fed would be in a rush to cut interest rates despite pressure from the President. We felt that by the ... (full story)