United States, FED, Charlie Evans discussed on Biz 1190 Overnight
Two percent before the USA going on defense been struggling to get inflation up. You look at the balance sheet expansion from eight hundred billion dollars to what four point five trillion at peak in twenty fifteen now the market appears to be growing warmly towards the idea of an additional rate cut sooner rather than later. This just we can silent. Why is it so difficult to defect to get these numbers? I think a number of reasons for the for information to remain not only US interest of the word and the the number of we saw on on Friday. Below his petition, and is confidential that we are leaving the with that knowing Felicien at least on the core side that goes consumption information pricing was wasn't over at the PPI. Was I yeah. So we have a. Dining flation about the macho little quote inflation. Let's just take the coordination subject full because person can subject spent one point three percent. This is Charlie Evans and a couple of weeks ago. Made the point that he would definitely be thinking about talking about insurance by cutting rates. Do you think we're going to see more momentum about rate cuts in the United States of America, the market spicy and twenty five bits of the moment? I think they might go ahead of phantom. So his patients, my base case scenario is that the fed that wants to be out of the picture at least the four thousand in nineteen they already a lot in December. And and the first of this year. The outlook voting physician is that they don't need to characterize at least in this year. If we would prize any addition should be more for twenty twenty. So what do you think we're going to get from the fed in the coming days is it going to be a harder tone when it comes to some of the dumbest this we've seen in the past. I mean, we've got obviously the job say, no, we've got refinancing figures an announcement of the refunding announcement, and then the FOMC, of course, this week. I think the tone is going to be very similar to what the we had the last month. We're going to have some information on the amount or financing, and this is the shit by the intensity of Delvin dovish. I don't expect any change compared to previous meeting. You're buying the dip on across the euro by to your paper on your of tenure paper on on a deck. It is not a conviction coal from you. I it is up. So that they convention call the cover should steepen meet the from the current level. I consider to fifty for the ten year a pilot number democracy move in the trading range between two thirty six which is the lowest we touched a month ago and to sixty two sixty three we should remain in that in that range. Do the two year part of the curve as. And we have a father. Lurlene and especially their down the curve is very interesting in in US and US is still the only developer market where Rio rates are stayed impulsive territory. So for an investor around the world is is a market were they should they should be invested. Okay. We're gonna take a little bit deeper into the currency side of the equation rough about Tony head of debt capital markets over Gulf Investment corporation on the show. This Sunday still had his longest run thirteen years. It takes a breather. Prices full nearly full percent as President Trump claims to have cooled OPEC to.