Needless to say, the widely anticipated 25 basis point cut to the Fed Funds target rate (now standing at between 2 and 2.25 per cent) wasn’t enough for President Trump; I think many were thinking along his lines when, as a trading room dealer would describe the reaction as: ‘’buy the rumour, sell the fact’’. Fed chairman Powell called the move a ‘’midcycle adjustment’’. Today the MPC meets at Threadneedle Street and they’re bound to keep the Bank Rate at 0.75 per cent; they also publish their Quarterly Inflation Report. Don’t breathe a sigh of relief just yet because tomorrow, Friday 2nd August, the US publishes its July employment statistics.
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