Reported 12 months ago
According to Morgan Stanley's head of cross-asset strategy, Sheets, recent consumer price index and labor market data in the US and Eurozone are making the bank more optimistic about potential rate cuts by the Federal Reserve and the European Central Bank in September. The data suggests that inflation is cooling, with the Eurozone unexpectedly experiencing an uptick in May inflation. Market watchers are closely monitoring core personal consumption expenditures which have decreased to a three-year low, indicating a slowing inflation trend. Most economists surveyed predict that the Fed will cut rates in September, with further reductions expected later in the year, while the ECB is also expected to lower rates in September and December.
Source: YAHOO