The Fed on the ridge line

A week of political divisions (with the Trump-Harris debate) but also of economic ones with central banks trying, as best they can, to resist the pressure of the interest rate markets. A 25 bp cut was indeed delivered by the ECB on Thursday but with a tone perceived as restrictive, even though investors are getting impatient and worried about growth, just like in the United States. A debate that also promises to be lively within the FOMC next week: 25 bp or 50? Monetary policy, the dominant factor of recent weeks, is decidedly on a ridge line: the desire of central bankers to buy a little time in exchange for a little additional confidence on the inflation trajectory is increasingly at odds with the growing fragility of activity .