Danske Bank analysts suggest that in the US, markets will look out for two interesting events on the agenda: the release of the June FOMC minutes and Fed chief Powell’s semi-annual testimony before the House Financial Services Committee.
Key Quotes
“In his prepared remarks, Powell will not address monetary policy but he is sure to face questions about the Fed’s view on the economy in the Q&A afterwards. The central question remains when and by how much the Fed will cut interest rates.”
“After a strong jobs report on Friday, markets have scaled back expectations of an aggressive 50bp cut already in July. Apart from the timing and preconditions for Fed easing, the minutes will also shed some light on the different stances within the Fed. We stick to our view of a 25bp ‘insurance’ cut in July and a total of 75bp in the second half of 2019 (i.e. July, September and December).”
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