U.S Data points to Conservation of momentum and Chair Powell Testimony on day 2 - "We're not far from it"
S&P 500, NIFTY, SENSEX, Gold made fresh all time highs while Bitcoin recovered Tuesday's drop to 59313 to close at 66941. U.S. Market Wrap US2s10s bull steepened / Fed Funds are now pricing in 1 full 25 bps rate cut by June 2024 / USD index declined further / Key Employment figures due today Michelle Bowman (voting member) speech yesterday’s acknowledged continued progress in inflation, the challenge in achieving last mile of inflation, labor market coming into better balance, strength in consumer spending and recent data shows rebound in jobs market. Her base case is further decline in inflation but there are upside risks to inflation that emanate from Geopolitical developments , loosening of financial conditions and strong labor market could lead to persistently high core services inflation. Uncertainty in economic outlook warrants a data dependent cautious approach and it will be appropriate to reduce rates when there is more confidence that inflation...