'Incredibly Premature' to Call for a July Rate Cut, RBC's Porcelli Says | Metals Mine

  • 'Incredibly Premature' to Call for a July Rate Cut, RBC's Porcelli Says

    From youtube.com

    Tom Porcelli, chief U.S. economist at RBC, explains why he thinks it is wrong for markets to price in a July interest rate cut from the Federal Reserve. He speaks with Bloomberg's Guy Johnson on "Bloomberg Markets."
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EventsTrader
Jun 13, 2019 8:21pm
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It sounds like this guy might have a position that wouldn't benefit from a July rate cut.

If the market is pricing in an 88% chance of a cut, I'm not going to pretend to know more than the market. The Fed has a strategy. Even though they try to be transparent, they care more about not spooking the market. They would much rather the market figure out the next move, then surprise them at a meeting or in a speech. This has been priced in slowly, just what the Fed would want.
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