Walk the walk?

The FOMC meeting for the month of May ends today, and J Powell will talk around 2 pm to talk about the economy and the impact on tariffs. No action is expected but he can move the marletw with words. In the chart below you can see the odds for Fed funds rates for the remainder of the year. 2-3 cuts are expected by December. But that may not be the main event this week. China has announced several rate cuts to help their economy: (1) cut the Reserve ratio requirement by 0.5ppt and (2) cut the 7-day reverse repo to 1.4% (from 1.5%). But above all, China has announced that Chinese Vice Premier He Lifeng will hold talks with U.S. Treasury Secretary Scott Bessent in Switzerland later this week. That meeting can be the starting point of a new era that reshapes not only the rest of the year, but how the next decades will look like in terms of trade and the future of the dollar as global reserve currency.

Want to know more? You can find all our posts at https://www.myfundamental.net/insights

#iamfundamental #soyfundamental #wealthmanagement #familyoffice #financialadvisor #financialplanning

#policymistake #ratecut #stagflation