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The Folly of the Fed's Last Dot Plot

July 15th, 2024

  • Good US inflation report increases hopes for a rate cut no later than in September

  • US Core CPI has fallen to 2.1% in Q2 from 4.2% in Q1

  • The prospect of a rate cut should help equities hold up despite weaker-than-expected growth data

  • Equity market rotation into interest rate-sensitives and small caps under way and likely to continue

  • Record levels of money market assets indicative of potential buying power for risk assets as interest rates fall



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