The federal reserve may not reduce interest rates so early, but when it does, relaxation could be aggressive, according to the Dutch investment bank.
On Wednesday, the Fed kept the pending reference rate between 4.25% and 4.5%, President Jerome Powell increasing the Specter of Stagflation during the press conference after the announcement.
Cryptographic and traditional markets have sought Powell for a drop in potential rate in June. ING underlines its comments according to which “uncertainty about economic prospects has increased” and the “risks of higher unemployment and higher inflation have increased” as proof that the waiting method could last a few additional meetings.
The comments suggest “little inclusion to move until it is confident in the direction in which the data are directed, which means that the rate reductions could be delayed, but may be sharper when they come,” Ing in a note to customers.
The investment bank said that the waiting position could “persist until September”.
The bank’s reluctance of the Fed to act is probably due to concerns that the trade war and the disturbances of the offer in ports and logistics companies could amplify inflation.
Bitcoin gathered from $ 96,000 to $ 99,5,000 since the Fed’s decision on Wednesday, with the teasing of President Donald Trump of a commercial agreement with a great economy helping to restore the feeling of risks.
