Nordea Research discusses its reaction to today's FOMC minutes from the July meeting.
"Everyone was looking for clues as to how many cuts there will be in what the Fed calls a mid-cycle adjustment. Few answers were given and markets did not react. Everyone now awaits Powell’s speech this Friday," Nordea notes.
"So what is the conclusion from this? It’s ongoing, so that would probably mean at least one more cut, we think. So we stick to our forecast of a new adjustment down in September. But after that, we will just have to wait and see how the economy evolves. The Fed is still data dependent. We think more cuts will be needed, and have pencilled in 4 cuts in total," Nordea adds.