โ ๏ธ Federal Reserve interest rate cut signals escalate again! Nomura Chief: These two data points are "forcing" a shift in monetary policy ๐ธ
๐ใCore Viewpointsใ
Matthew Paley, CIO of Nomura Asset Management, pointed out in the latest report:
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Slowing inflation + weak labor market โ increased likelihood of interest rate cuts
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The latest economic forecast will lower inflation expectations for the coming quarters
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Internal divisions within the Federal Reserve on policy paths have reached historical peaks
๐ใKey Data Interpretationใ
1. The "brake" on inflation is evident
โข Core PCE price index has been below 2% for three consecutive months
โข Rental inflation fell by 1.2% year-on-year (the largest monthly decline in nearly 10 years)
โข Commodity price deflation continues to spread (used cars/electronics down over 8%)
2. The employment market is "inflated"
