FOMC Meeting: July 30th-31th

Summary

As we expected, the Fed lowered its benchmark interest rate by 25bp to 2-2.25%, citing “implications of global developments for the economic outlook as well as muted inflation pressures” as the reason for cutting.

Key points

• Key points:
• However, the assessment of incoming data was rather benign with no change to the language surrounding inflation developments and only minor changes to the committee’s degree of certainty on the evolution of investment and consumption
• The recent GDP report cleared up some of the uncertainties surrounding the committee’s outlook in June.

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