What will the monetary policy lead to: should we expect a softening of the Fed’s rhetoric?
Last week, the main US stock indices concluded trading with gains. This occurred against the backdrop of growing expectations that the Federal Reserve may adopt a less aggressive stance on monetary policy.
Several macroeconomic reports provided the impetus for such sentiments, pointing to a cooling labor market. Among them were ADP data on private sector employment in the US. Experts interpret these signals as indications of potential economic slowdown.
In light of these figures, the Federal Reserve could decide to pause the cycle of tightening monetary policy as early as September and refrain from another rate hike. However, for now, these are just market expectations.
The true intentions of the Federal Reserve will only become clear after the publication of the minutes from the regulator’s September meeting. The outcome of this meeting holds immense significance for the future dynamics of the US economy and financial markets.