Amundi: We expect the Fed to keep policy rates at their current level
Prior to the Fed meeting later this week, Alessia Berardi, Head of Global Macroeconomics at Amundi Investment Institute comments:
'While waiting for the task forces to deliver their outcomes, and in the absence of forward guidance, we are left to look at the data to infer the Fed’s next move.
With the June data, we are starting from better-than-expected inflation conditions, while on the other side we are facing a sudden escalation in the Middle East, which is once again boosting energy prices.
For the time being, and in the absence of evidence of second-round effects, we expect the Fed to keep policy rates at their current level. The persistence of such pressure on costs may challenge our view of a Fed on hold in the near future.'