In his Congress appearance, Federal Reserve (Fed) chair Jerome Powell set the stage for a US rate cut later this month. We expect more to come this year.
Quickview: The US midterms have, as expected, seen the Democrats take the House with the Republicans holding the Senate. Our investment experts consider the implications for fiscal policy, trade, and the 2020 presidential election.
Interest rates are rising from their record lows and global growth is positive, but the financial crisis still casts long shadows
We still see scope for further interest rate rises from the Fed this year, following yesterday’s 25 basis point hike at the March meeting of the FOMC.
Core inflation looks likely to accelerate further, putting pressure on the Federal Reserve to keep tightening policy.