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UBS On-Air: Market Moves

UBS On-Air: Paul Donovan Daily Audio 'Is Fed policy error nearly over?'

31 Jul 2024

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The Federal Reserve is not expected to end its policy error today, but hopefully a rate cut will be signaled for September. Monetary policy has progressively tightened since the start of last year. For savers, slowing price inflation has increased real interest rates. For borrowers, slowing household income growth has increased real interest rates. The pressure of real policy has become ever more onerous as the economy has slowed.

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