WOOD Flash – US macro: another large hike in store
At its meeting yesterday (27 July), the FOMC at the Fed decided to raise the target range for federal funds rate by 75bps, to 2.25-2.50%, as we expected. The tone of the meeting was firm, but prudent, as Chairman Powell acknowledged the softer economic data, but left the door open for another 75bps increase at the next meeting in September. We believe the odds are in favour of a 75bps hike in September, but we expect the pace of tightening to slow down, before the cycle pauses at 3.50-3.75% in December. The FOMC’s focus is likely to shift to growth from inflation towards the middle of next year, and we have pencilled in a gradual rate reduction cycle starting from June, totalling 100bps, to 2.50-2.75%, by the year-end.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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