Reported 4 months ago
Saxo Chief Global Equity Strategist, Peter Garnry, discusses the implications of the Institute for Supply Management's manufacturing PMI dropping below analyst expectations to 48.7 in May on the Fed's interest rate decision. He explains that China's export push is pressuring manufacturing in Europe and the US, potentially leading to lower global goods inflation initially but higher in the long run due to protectionist trade policies. Garnry predicts a rate cut later in the year, pointing out the 'two-lane economy' challenge faced by the Fed, with one part sensitive to interest rates while the other stays resilient and advises watching market shifts post-presidential election for insights.
Source: YAHOO