AJ Bell Investcentre’s Post

SEPTEMBER 18 - All eyes are on the Fed as markets prepare for the first U.S. rate cut since 2020. Policymakers signal a cut might be coming, aligning with a global trend. In 2024, six major central banks, including the ECB, Swiss National Bank, and Bank of Canada, have already eased rates. The ECB's latest cut on September 12 highlights the shift towards growth-focused policies as inflation cools. #FED #ECB #globaleconomy #inflation #monetarypolicy #interestrates #centralbanks #currency

Last week the Federal Reserve released its highly anticipated "dot plot," which maps out policymakers' expectations for where interest rates could be headed in the future. In its projections, the central bank signaled it would lower interest rates just one time this year, down from the three cuts anticipated in March. Had some fun breaking down the news on Yahoo Finance... check out our full explainer below! ⤵ #fed #centralbank #dotplot #interestrates #federalreserve #inflation

Won’t the bonds rally as central banks cut rates? One of the PMs I advise asked. From my conventional mindset, it depends. The cut from the ECB yesterday despite their own higher inflation forecasts raised concerns about the return of easy money policy causing higher inflation. The fixed income market so far has not seen much of a reaction. However, the exit door is really small for all the new money which has piled in based on expectations of rate cuts.

Read the report https://ow.ly/jVos50TePBn A sharp fall in markets early in the month gave way to recovery as it became clear that growth remains positive and inflation moderate, with central banks ready to act. We remain highly constructive. Learn more about JOHCM UK Equity Income https://ow.ly/FL0r50TePBo Clive Beagles James Lowen #JOHCM #UKEquityIncome

We believe the Federal Reserve is prepared to lower rates in 2024. Current market pricing of 3 to 4 cuts looks appropriate, in our view. The European Central Bank and Bank of England may begin rate cutting cycles as well, but most likely after the Fed begins: https://lnkd.in/ebV-JHQC #Economy #CentralBanks #Inflation

This month saw the Federal Reserve cut interest rates by 50 basis points for the first time in four years, while the Bank of England and European Central Bank held rates steady. According to the swap market, there could be cuts across the board in the next few rounds of central bank meetings. Take a look below at the projected policy rate path of the Fed, BoE and ECB as implied by pricing from now until June 2025. #ChartOfTheWeek #OnTradeweb

📉 Interest Rates are coming down 📉 Central banks are starting to cut interest rates, with the ECB leading the way! 📊 What does this mean for your savings and investments? Explore the latest updates and implications for your financial planning. Read more👉 https://lnkd.in/eri9ij7W #InterestRates #ECB #FederalReserve #BankOfEngland #InvestmentStrategy #StayInformed

📉 Interest Rates are coming down 📉 Central banks are starting to cut interest rates, with the ECB leading the way! 📊 What does this mean for your savings and investments? Explore the latest updates and implications for your financial planning. Read more👉 https://lnkd.in/eEvDG7GS #InterestRates #ECB #FederalReserve #BankOfEngland #InvestmentStrategy #StayInformed

📉 Interest Rates are coming down 📉 Central banks are starting to cut interest rates, with the ECB leading the way! 📊 What does this mean for your savings and investments? Explore the latest updates and implications for your financial planning. Read more👉 https://lnkd.in/ekwG9Pvi #InterestRates #ECB #FederalReserve #BankOfEngland #InvestmentStrategy #StayInformed

We are going there, just not there yet. In our latest report, we reflect on cautious remarks by officials from the Federal Reserve and the European Central Bank. There is a case for easing policy as slowing inflation means higher real interest rates and hence a growing burden for households and businesses. But with a still tight labour market and core inflation running at 3-4%, central bankers tend to wait before changing course. Time is coming, but not now.