Fed looks done with tightening. How about the ECB and the BoE? | MarketTalk: What’s up today? | Swissquote

Show notes

The Federal Reserve (Fed) wraps up the year with a resounding finale. The Fed is not bothered to see the US yields fall in preparation for a rate cut. On the contrary, they endorsed the idea of a policy pivot thanks to an encouraging fall in inflation and sounded way more dovish than everybody expected at their announcement yesterday – which clearly exposed that the policy pivot is coming.
The US sovereigns rallied, the Dow Jones hit a record, the US dollar tanked.
Now today, it’s the European Central Bank (ECB) and the Bank of England’s (BoE) turn to give their final policy verdict for this year. Both Mme Lagarde and Mr. Bailey are certainly annoyed to see the Fed go so soft yesterday, as Christine Lagarde had said herself that no reduction in rates should be expected in the next few quarters. It will be interesting to see if ECB and BoE officials feel comfortable about giving up their tough stance.
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