Fed Preview: Powell to be less sanguine about growth outlook – ANZ
|Analysts at Australia and New Zealand (ANZ) banking group “expect the Fed to hike by 75bp at its meeting this week.”
Also read: Fed Preview: Dollar’s fate hinges on Powell’s policy guidance
Key quotes
“Chair Powell is likely to be less sanguine about the growth outlook compared to the June meeting, but this won’t change the Fed’s resolve to take the policy rate to restrictive settings by the end of 2022 to limit inflation.”
“Housing data continue to roll over as rising mortgage rates, high raw material costs and labor shortages take their toll.”
“The slowdown in activity appears to be broadening with the Composite PMI index falling below 50 in July amid surprising weakness in the services sector.”
“And a negative 2Q GDP print this week will likely fuel recession talk even further given it would be the second straight quarter of negative growth.”
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