Institution: Fed Interest Rate Cut Path Divergence Intensifies, Meeting Minutes Expected to Clarify Direction
BlockBeats News, November 20th, The data fog has intensified the uncertainty surrounding the Fed's policy, as many Fed officials have expressed concerns about inflation stickiness and have shown a cautious attitude towards further rate cuts. This has also kept U.S. Treasury yields in a relatively narrow range, as traders await new catalysts to change market pricing.
Michael Lorizio, Head of U.S. Rates and Mortgage Trading at Manulife Investment Management, said, "We have been lacking guidance from top-tier economic data for too long, and it is difficult to form a highly confident judgment on the current state of the U.S. economy until we start to see the data coming out."
The upcoming release of the Fed's October meeting minutes may further reveal how many policymakers might oppose a rate cut in December. "When there seemed to be many different opinions before, today's summary information through the meeting minutes may help further shape market expectations for the December meeting," Lorizio said. (FXStreet)
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