Fed to cut by 25bps at each of the next five meetings – Danske Bank
|Danske Bank analysts are expecting the US Fed to cut by 25bp at each of the next five meetings taking the target range to 0.75-1.00% at the March meeting.
Key Quotes
“We do not anticipate the Fed will pre-commit to more easing but that it will stick to its current ad hoc approach. If the Fed really wants to reflate the economy and markets, it may need to commit more to easing and/or cut more and faster eventually.”
“We have a very light data calendar today in terms of economic data releases. Hence focus will be on central bank signals and political signals.”
“In the US, University of Michigan's survey of consumer confidence will be in focus in particular after yesterday's strong retail sales number. The US consumer is one of the key forces holding up US growth amid weak investment growth.”
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