After the FED opened the door for risk appetite overnight on Wednesday, it did take a little while for the ever-present bulls to step through. It also took for the cash market to open and a better reading in Jobless Claims to entice continued buying taking the US bourses to record highs.
The CME FedWatch tool did not lie. The US central banks opted to lower the cost of borrowing by 0.5% to the 4.75%-5.00% range with one of the governors opting for a 0.25% decrease. The Federal Reserve has ‘greater confidence’ about inflation and sees a rough balance between achieving price stability and a healthy labour market, its two critical mandates.
The pre-election political environment in the US has all the ingredients of a Hollywood blockbuster. The tension is palpable, relationships are toxic, and it features the Good and the Bad, and perhaps even the Ugly. It is full of intricacy, not to mention the numerous assassination attempts and part of the storyline is centred around money.
Copyright © 2024 TP ICAP