Pisint says that market pricing in federal reserve price discounts before the end of the year

Treasury Secretary Scott bet On Thursday, the financial markets are priced at a high possibility to reduce interest rates in the field of federal reserves before the end of the year amid concerns about the definitions that pushed inflation to the top.

BESSENT, during the appearance of Fox News’ “Special report with Brett Bayer,” After the Federal Reserve maintained a fixed benefit prices for its fifth consecutive meeting in late July, citing concerns about inflation caused by customs tariffs, it was “a fairly logical” in how they looked at the impact of definitions on the economy.

“On the one hand, they used to say that we needed to wait and manage the risk, and we need to know if we would see inflation from the definitions,” said Pesin. “Once again, inflation will not be. Prices for one time like, as you know, do your driving license more this year?

“The market is now pricing a high probability of price discounts in the coming months, and I expect the Federal Reserve Bank to follow the market,” Pesin said.

The markets will now bet on the price reduction in September after the disappointing jobs report

The market is currently pricing by 89.4 % of the possibility of a 25-basis average Federal Reserve When she holds her next meeting in mid -September, according to the CME Fedwatch tool.

You also see that the rates are much lower than the current target range of 4.25 % to 4.5 % by the end of the year, with a chance of 45.7 % than 75 points of discounts and a 42.6 % opportunity of 50-basis points from this level after the Federal Reserve meeting in December.

BESSENT also emphasized that the price increases caused by tariffs may be merely an increase in prices for one time, saying that inflationary pressures were relatively modest.

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“Until now, we haven’t seen a move to prices, and if we do so, it might be a single -time modification of prices. But what we see so far is that the manufacturers eat it,” said Pesin. “Foreign companies only benefit from the United States for a long time, even American companies carry a lot of definitions, and you may know, perhaps we will see some prices for consumers.”

“In general, inflation was very – as you know, was very young, and in fact, two months ago, we saw a decrease in inflation for the first time in four years,” he said.

The Federal Reserve has stopped cutting off due Stubborn It remains higher than its long target by 2 %, while the labor market is in solid at 4.2 % unemployment.

The Federal Reserve maintains a major interest rate for the fifth consecutive meeting despite Trump’s pressure

While inflation is much lower than its highest level in 40 years in 2022, it has been marked away from the goal of 2 % in recent months since its last decrease in April.

the Consumer price index (CPI) increased from 2.3 % in April to 2.7 % in June, while the preferred inflation scale of the Federal Reserve, Personal Consumption Expensation Index (PCE), from 2.1 % in April to 2.6 % in June.

These inflation trends have diminished in price discount expectations until they saw a recovery after or folded from expected Job report in July On Friday, which was found that only 73,000 jobs were created last month – much lower than 110,000 Economists included in LSEG.

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The report also included major declining reviews in May and June, with 258,000 jobs that were previously announced for those months. It has shown that the labor market was weaker than previously thought, which in turn reaffirmed the market hopes for the interest rate in September.