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Bets are increased by lowering rates By

© Reuters. Powell and his Achilles heel: Bets are on rate cuts

Laura Sánchez – Despite the wave of business results and macro data in Europe, Asia and the United States, investors are already focusing on.

Keeping rates unchanged is already being discounted on the market and its president Jerome Powell will repeat his holubic tone in the following statement.

Attention will be paid to analysts Bankinter (MC :), "in the central bank's view of the current market perspective, which assigns a 66% probability to one in 2019."

For Link Securities experts, "the scenario for stocks is very positive, given that the Fed has a lot of reasons to continue with its" wait and see "strategy.

According to these experts, "the current growth rate of the US economy is hampering the Fed's cuts in rates and low inflation will deter interest rates".

Adrien Pichoud, chief economist and manager of SYZ AM's portfolio, points out that "monetary policy instruments are completely quiescent and the Fed's position is really neutral (without any bias towards one or the other). , ready to be adjusted in the sense that is needed ”.

The expert adds that "in a context where global growth concerns remain, futures markets have not been slow to begin discounting rate cuts this year or the next."

"We expect bond markets to remain calm over the coming months, as the Fed, as well as major central banks, has made it clear that they will continue to lend at least until the end of 2019," concludes Volker Schmidt, senior fund manager. Ethenea

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