Bank of America says the September Federal Open Market Committee (FOMC) meeting has started live
- We hold our view on the reduction in December based on inflation trends.
- Risks are moving towards an early reduction.
- The net weakness in the jobs report should maintain the expectations of a market rate cut this year and should maintain the continuity of September.
- The labor market is still cold.
- We see that the activity and employment data confirm the slowing economy, which will lead the Fed to start a cycle of gradual interest rate cuts later this year.
It is worth noting that Fed Chairman Powell will speak on Tuesday before the Senate and on Wednesday the House of Representatives, and then on Thursday we will have inflation data represented by the Consumer Price Index.
