How will the US inflation data shape the Federal Reserve's decision? | Morning Markets

What this episode covers

Today, Sebastian Mackay, Investment Director, looks at the August inflation data for the US and its implication for imminent interest rate decisions. There’s still a question of whether it will be a 0.25% or a 0.5% cut but regardless of the Federal Reserve’s decision, this cut is just the beginning of what is expected to be a cycle of cuts that takes interest rates down to below 3% by the end of 2025. For a global context, the European Central Bank meets today with an expectation of a further 0.25% cut and the Bank of England meet next week where even though there is a no cut expectation, a further one or two cuts are expected before the end of the year. In summary the overall global direction for equity markets is currently one of positivity.

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