FOMC July Meeting Preview

Will Powell hint at yield curve control?

By Enrique Diaz-Alvarez Chief's Risk Officer, Matthew Ryan Senior Market Analyst & Roman Ziruk Market Analyst, Ebury - 28th July 2020

Summary:

Fed set to keep policy unchanged given large stimulus already announced, improvements witnessed in US data and recovery in financial markets.
Rising US COVID numbers likely to be the Fed's main cause for concern, as will be the so far lack of agreement in Congress on whether to extend the additional unemployment benefit scheme.
We expect the Fed to strike a cautious tone over the outlook, talking up downside risks and reiterating that rates will remain unchanged for the foreseeable future.
We think Powell will leave the door ajar to yield curve control later in the year. The market reaction to this may be telling.

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Ebury - FOMC July Meeting Preview - 28.07.2020

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Press Contacts:

Gunther De Backer

Partner, Backstage Communication

Olivier Duquaine

Managing Director, Backstage Communication

About Ebury

Ebury enables cross-border transactions for companies, institutions, and banks and their clients, that want to trade internationally. Established in London in 2010, Ebury is one of Europe’s largest and best funded fintech companies. Juan Lobato, a serial entrepreneur, and Salvador García, an expert in Financial Services, created Ebury to make it easier for businesses to trade internationally.

Since 2010, Ebury has become the largest non-bank provider of global transaction services, offering organisations access to a platform that allows them to make international payments, receive international collections, manage currency risk and get access to financing.

Ebury currently employs circa to 1,000 staff across 25 offices in 20 countries and is serving over c.40,000 businesses internationally. What started in the UK is now a global company with offices in several European countries, the Middle East, Hong Kong and Mainland China, Australia, Canada and the US. Ebury’s investors include 83North (investors in iZettle, Celonis, JustEat) and Vitruvian Partners (investors in Farfetch, Skyscanner, Darktrace, Marqeta).