Analysis

US: Three different messages from Washington DC

  • President Trump has argued that the US economy would get a boost if the Federal Reserve were to cut rates

  • The minutes of the FOMC show the members are confident about the growth outlook. The outlook for inflation, against a background of global uncertainties, allows them to be patient in terms of policy

  • The IMF in its latest Global Financial Stability Report expresses concern about how high debt levels weigh on the resilience when faced with significantly slower growth or higher borrowing costs

  • This implies that Fed policy will not only be confidently patient but also patiently vigilant

 

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