Fed's Collins: December price lower is actually on the desk however not a carried out deal

• There may be extra information that we are going to see between now and December
• Should proceed to weigh what is sensible
• Fed may finally decelerate tempo of price cuts however too quickly to say if will probably be in December
• Fed coverage is restrictive
• Do not see proof of recent value pressures
• Full transcript (could also be gated)

After Powell’s feedback yesterday, the chances of a 25 bps price lower have dwindled to ~63% and is conserving that method now. Collins’ remarks reaffirms that there’s a probability of a pause subsequent month and that’s conserving markets on their toes.

This text was written by Justin Low at www.ubaidahsan.com.



Source link