A quick snippet from GS on why the Fed is to cut rates at the July meeting
"Our reasoning for policy easing - slowing growth against a backdrop of subdued inflation and elevated uncertainty - is consistent with the Fed's reasoning for insurance cuts"
GS says they are not in the camp expecting a 'turn in the cycle':
- market-implied odds are consistent with a turn in the cycle
- we do not foresee in the near-term
(GS commenting on market estimates there will be another cut to come in Q4, perhaps as early as September)
RBC echo:
- We don't think this is the start of a full-on easing cycle
- cuts are about providing a bit more accommodation to offset trade headwinds
