Oddbean

Nomura says FOMC focused on bolstering the US economy ... "inflation less important" | Forexlive ========== Nomura believes that the Federal Open Market Committee (FOMC) is prioritizing the strengthening of the US economy and considers inflation to be less important. They also mention that the 'event premium' on today's Consumer Price Index (CPI) announcement is fairly high. Nomura states that downside risk in the US equity markets has decreased, citing macro hedge funds buying into the pullback. They also note that the downside risk posed by systematic investors is now less serious. Volatility levels are expected to remain elevated due to uncertainty surrounding the US economy. Nomura suggests that the market assigns higher event premiums to economic indicators, given the increased uncertainty. Members of the FOMC are signaling a focus on keeping the US economy healthy, which implies that indicators of inflation are seen as less important. However, the event premium assigned to this week's CPI announcement is still fairly high. #Nomura #Fomc #UsEconomy #Inflation #EquityMarkets #Volatility #Cpi https://www.forexlive.com/centralbank/nomura-says-fomc-focused-on-bolstering-the-us-economy-inflation-less-important-20240813/