US: Weaker global growth to impact monetary policy? – Danske Bank
|Analysts at Danske Bank note that the US Treasury market rallied on Friday after soft comments from the Fed's Clarida and Kaplan.
Key Quotes
“The discussion is now more about whether weaker global growth will impact US monetary policy and less about bringing US policy yields to or even above the neutral level, which was the theme just a few weeks ago after the surprisingly hawkish comments from Powell at the beginning of October.”
“In particular, the front-end of the curve rallied and on top of a widely expected December hike some 30bp is now priced in 2019. We have little doubt that this week the market will continue to scrutinise any signs that the Fed has become more concerned about global growth or if monetary policy in the US is still on auto-pilot.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.