Fed Watch: Rate cut ahead – new forecast

From e-markets.nordea.com

We expect the Fed to cut its policy rates in June (previously March), as we believe the labour market will weaken in tandem with the economic slowdown and as financial conditions might otherwise tighten when liquidity measures are tapered. We change our forecast. We still expect the Fed to cut, but March is probably too early given the lack of FOMC speak on the subject and the generally positive key figure surprises during the first week of February. We still expect the Fed to cut rates, but probably not until June. Three arguments for a Fed cut 1) Growth is likely to slow below its potential in the first half of the ... (full story)