Macro & Markets: Divergent central banks

From corporate.nordea.com

The Fed stayed put and signaled no rush in reducing rates, while the ECB cut rates and said more cuts are coming. Both as expected. The central bank meetings at the major central banks did not surprise this week. The Fed stayed put while the ECB cut rates by 25bps. In terms of forward guidance, the Fed saw no rush in moving rates at their next meetings. The ECB, on other hand signalled more cuts are coming, most likely another 25bps at the next two meetings. The difference in central bank actions and outlook is easily explainable by the divergence in economic developments. The US economy has been growing above trend ... (full story)