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PRE FED commentary, by François Rimeu, Senior Strategist
- We do not expect any substantial change from the July FOMC policy statement.
- On the economic front, we expect the FED to maintain a cautious optimistic tone considering the spread of the delta variant.
- Employment has strengthened but FED members will need more data before being comfortable tightening financial conditions.
- We believe Chair Powell will indicate tapering discussions will continue during the summer.
- We do not expect major details on the tapering process. The FED may announce a change at Jackson Hole conference (August 26-28) or during the September meeting (21-22) before a formal announcement in December.
- We expect Chair Powell to reaffirm that price increases are mainly transitory, but he might emphasize that the Committee could act if higher-than expected inflation was to persist for an extended period.
In summary, we expect the FED to maintain a prudent approach, which will have no significant impact on financial markets.
Disclaimer
This commentary is intended for non-professional investors within the meaning of MiFID II. It is provided for informational and educational purposes only and is not intended to serve as a forecast, research product or investment advice and should not be construed as such. It may not constitute investment advice or an offer, invitation or recommendation to invest in particular investments or to adopt any investment strategy. Past performance is not indicative of future performance. The opinions expressed by La Française Group are based on current market conditions and are subject to change without notice. These opinions may differ from those of other investment professionals. Published by La Française AM Finance Services, head office located at 128 boulevard Raspail, 75006 Paris, France, a company regulated by the Autorité de Contrôle Prudentiel as an investment services provider, no. 18673 X, a subsidiary of La Française. La Française Asset Management was approved by the AMF under no. GP97076 on 1 July 1997.