(Finance) – “In the fourth quarter the US economy grew by 3.3%, exceeding estimates of 2%, thanks above all to the continued growth in consumption. However, core PCE inflation fell from 3.2% to 2.9% in December. On a 3-month annualized basis, core PCE stands at 1.5%, while the 6-month annualized figure is at 1.9% for the second consecutive month. With this sequence of target inflation values, at the Fed meeting on Wednesday, Powell will have to find a balance between a slowly slowing job market and a healthy consumption situation“. This was stated by the Global Credit Team of Algebris Investments, a global asset management company.
“To be able to cut rates in Marchthe Fed must remove this restrictive stance from this month’s statement and start preparing the soil – the experts write – This week’s labor market data will only be partially available: NFPs are scheduled for Friday and a drop from 216k to 178k is expected.”
“Our focus is on the announcement of Treasury Quarterly Refunding on Wednesday, in which the Treasury is expected to increase issuance again, but focusing on shorter maturities, and consequently ensuring the maintenance of stably low short-term premiums and an advantage for risky assets”, they add.