Amundi’s latest analysis suggests the Federal Reserve (Fed) is unlikely to make any major moves at its upcoming FOMC meeting. Despite recent signs of a weakening labor market and persistently high market rates, inflation remains the key focus. The Fed is expected to maintain its current stance, balancing patience with caution to avoid complacency.
The European Central Bank (ECB) is also anticipated to keep its monetary policy unchanged during its next meeting. However, the ECB is expected to maintain a hawkish tone, signaling readiness to act if necessary. The market will be closely watching for any hints about the conditions under which the ECB might provide additional support.
According to Amundi’s Head of Global Macroeconomics & Emerging Markets Strategy, the ECB will likely acknowledge existing tensions but refrain from immediate action. The focus will be on understanding the extent of the safety net available and the triggers for its activation.