A Divided Fed to Continue Favouring Easing Even as the Iran War Raises the Stakes

The Federal Reserve is seen taking no action at its meeting concluding today, although the majority of the Federal Open Market Committee (FOMC) is probably going to continue pencilling at least one rate cut before year-end. Another round of dissent(s) at this meeting is probable, with such dissenter(s) again voting for a prompt 25bp rate cut. The Iran war has changed the circumstance – with the associated stagflationary threat having the potential of testing the resilience of the American economy of the ...