Separately, we also saw some moderate tweaking of the statement language reflecting the still buoyant level of household spending and very slowly improving inflationary conditions. We think that the Fed can now move another time this year to complete its “mid-cycle adjustment.” Further, we are keeping a keen eye on trade discussions, on recently concerning oil dynamics, on market liquidity, on Brexit, on the pace of slowing employment conditions, and as always on the inflation readings from here to determine if the Fed will have to cut rates again in October, or whether it will wait until December, or potentially at both meetings.
Rick Rieder is chief investment officer of global fixed income at BlackRock.