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Macro & Markets: Does the US need rate cuts in March?
The market has read very much into the moderation of economic data the past month. We struggle to see the case for the Fed to cut rates in March. What a difference a month can make. After a little softening of economic data, the market is suddenly calling for rate cuts already in March. We believe it take much longer before the Fed can be convinced that inflation is truly under control. With the US labour market still very much on a strong footing and US financial conditions now on the easy side, it will not take much for the economy to start firing up again. chart A quick run-through of the weaker data that has ... (full story)