Just last week, in prepared remarks to Congress, he cited the June and July inflation numbers to View, to see how much of the tariffs are being passed through to consumers. The July inflation data won't be reported until August, he was clearly not giving signals that a July cut was on the table.
•Would he signal any softening on his stance on when the easing cycle would resume?
"He did expantiated,wouldn't take any month off of the table". recent Fed proposals to reform the regulatory constraints on banks -- constraints which have been distorting markets and weakening liquidity, especially in the Treasury market.
But whether or not the Fed will cut probability wise in July or September wasn't the most important topic at this forum,was the solvency of Europe.
Remember, previous March, Europe was forced into a "whatever it takes" fiscal policy to;
1) catch up in AI, and
2) build independence in defense capabilities.
The latter, was the result of emergency meetings to backstop Ukraine, if President DonaldTrump were to end U.S. funding.
Add to this, they have since doubled down on the climate agenda.More Deficit spending. More debt.
This debt deluge comes only a little more than a decade removed from a sovereign debt crisis in Europe.
And without intervention by the European Central Bank, the debt crisis would have become a cascade of debt defaults and ultimately a collapse of the monetary union (the euro).
Previous March, for the large scale fiscal spending plan to work, without triggering another European sovereign debt crisis, the ECB will be back in action -- more central bank backstops to tame the bond yields of the fiscally vulnerable countries.
The economists presenting at this ECB forum highlighted this reality;Here's the problem: This ECB backstop works when major global central banks are coordinating, as they have for the better part of the past 15 years. But the era of coordinated global monetary policy may be over.
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