Former BOE member predicts Fed will lower rates before ECB acts

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DeAnne Julius, a former member of the Bank of England’s Monetary Policy Committee, predicts that the U.S. Federal Reserve will likely cut interest rates before the European Central Bank (ECB). This goes against current market expectations, which anticipate an ECB cut in June. Julius based her forecast on the Fed's dual mandate, focusing on inflation and employment in the U.S. economy. Despite positive job figures and inflation above the Fed's target, she believes the U.S. labor market adjusts quicker than others. Market data shows higher odds of an ECB rate cut compared to a Federal Reserve cut in June. The ECB's upcoming meeting is drawing attention, with observers looking for hints on a rate cut in June. Reaching consensus within the ECB can be challenging due to diverse economic situations and political dynamics among European countries. ECB President Christine Lagarde faces the task of balancing the interests of all member states. The latest inflation figures in the eurozone support discussions around potential rate cuts. Gilles Moëc, group chief economist at AXA Investment Managers, highlighted the implications of these figures on the ECB's inflation forecast and economic outlook. Lagarde has hinted at the possibility of lowering interest rates in June, but the path beyond that remains uncertain. Central banks are actively monitoring data and adjusting strategies to support growth and stability.

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https://globeecho.com/former-boe-member-predicts-fed-will-lower-rates-before-ecb-acts/