Slowing earnings growth and weakening manufacturing employment mean that the Federal Reserve is increasingly reliant on a faltering US stock market to deliver a boost to sentiment, according to Steven Blitz of TS Lombard, and that means it needs to signal more rate cuts to come.
"The Fed can help by confirming the next 50bp in rate cuts already priced into the market when the Federal Open Market Committee meets in mid-September. We will see if they take it," Mr Blitz wrote in a research report.
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