To think that just a few weeks ago no one really believed in two rate cuts by the FED, let alone three as it stands now. If not for the relatively moderate to good economic data from last Friday and investors were actually thinking Jerome Powell and his board buddies could act as soon as this week.
But in any case the market is expecting something, maybe not a rate cut but a clear indication that July will mark the turn of the tide, the first of the downward cycle. If that speech by Powell doesn’t materialize traders should expect some turbulent waters, so keep volatility in check near the time of the announcement.
Photo by Chuttersnap.