Financial Times | Uncertain | Relevant: bonds
US and EU stocks had closed out a strong week. Supporting this optimistic mood was the prospect of continued policy accommodation from central banks.
“In normal times, this would be enough for the Federal Reserve to continue normalising its policy stance, but FOMC members have highlighted that they want to wait and see if and how Brexit affects the outlook for the US economy before pulling the [interest rate] trigger again. We do, however, anticipate one rate hike at the end of the year,” Harm Bandholz, chief US economist at UniCredit.