United States: The Powell put

Fed chairman Powell has recently emphasized that the FOMC will be patient given the muted inflation reading and that it is ready to shift the policy stance swiftly if required
He also considers that financial markets are pricing in downside risks well ahead of the data. This means that they are too pessimistic on growth
Professional forecasters' estimates of the probability of entering into recession in the coming quarters do not display the typical pre-recession dynamics either

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BNP Paribas Team

BNP Paribas

BNP Paribas Economic Research Department is a worldwide function, part of Corporate and Investment Banking, at the service of both the Bank and its customers.

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