Market news
23.08.2019, 09:00

Fed’s Powell should be cautious in his speech - JP Morgan Chase

  • He should emphasise on caution, going slowly and being data dependent.

  • Trump shouldn't intervene with the Fed's job.

  • The more interventions there are, the more markets will realize they are ineffective.

  • There is a huge amount of uncertainty caused by the trade war among other factors.

  • Trade war, Brexit, political risks should not be only handled by monetary policy.

  • Trade war has been affecting businesses in a very negative way.

  • Services is still okay; manufacturing and business investment are not okay.

  • By counting heads, it looks like the Fed may cut by 25 bps in September.

  • But the Fed has to be wary, they are not equipped to deal with the next recession.

  • There is also a need to have insurance in keeping monetary policy ammunition.

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