Global Macro Weekly: Zero Equilibrium insights.
- By Chinedu Okoye Policy moves and data (on which some policy statements were based on) has rocked the market this week. The Fed Statement on interest rate policy sent the USD on a downward spiral with Gold and major USD peers amongst the beneficiaries. We present the most profound and effectual Macro policy moves and data out of the US and China, as both the PBOC and the Fed step into monetary easing territory. We reference reporting from Financial Times, Bloomberg and Reuters and offer the Zero Equilibrium perspective ("Our View"). 1.0 • Fed's Preferred inflation measure held steady at 2.5% in July - Financial Times: a. PCE come in t 2.5% below consensus of 2.6%: Not only is Unemployment slowing but Consumers are still spending as both Core and Headline PCE rose 0.2% in July. b. Core PCE came in at 2.6% below a consensus of 2.7%.. c. Rate cuts expectations are locked in with debates about how deep and frequent the cuts will be. We believe it will be