On the Spot: Tales of the Expected and Unexpected
Christine Lagarde didn’t disappoint the doves on the ECB when she gave the strongest hint possible that there will be a cut in interest rates for the Eurozone in June. This marks a change from Fed dependence to divergence by the ECB and of course comes with risks. After another stronger than expected CPI number in the States, the tenth in a row, expectations on the start of the Fed rate cutting cycle moved further out in the year and the predicted number of cuts continued to fall.