- I preferred to adjust wording that signals cutting bias
- I still expect rate cuts down the road
- Rates will likely remain on hold for a longer period
- The odds of worse inflation scenario have increased
- Alternative scenario could make the Fed consider a hike
Fed’s Collins is not a voter this year, so we haven’t got the chance to see her dissent regarding the easing bias in the statement like Hammack, Kashkari and Logan.
This shows though that there are more policymakers that have now turned more neutral and don’t want to have an easing bias. Such small steps generally precede a pivot in monetary policy but a lot will depend on US-Iran war and economic data.
This article was written by Giuseppe Dellamotta at investinglive.com.
