The word “appropriate” and how it is translated into the FED’s monetary policy, was the puzzling issue of yesterday’s monetary decision. Financial markets participants could not figure out if the word hints an upcoming rate hike, an extra rate cut, or upcoming pause. Jerome Powell clarified things out by saying “We would need to see a significant move up of inflation, that is persistent, before we are even consider raising rates to address inflation concerns”. The decision was a third rate cut with the same reasoning; to sustain economic growth and provide insurance for ongoing risks.

The Bank of Japan and Bank of Canada kept both their monetary policy and outlook unchanged. Worth noting, the recent resignations of both the Japanese Minister of Justice and the Minister of Trade over allegations.

The President Trump impeachment story is marked today by the formal vote of the House on the next steps and procedures to be followed.

Macro releases: The EU inflation, the EU unemployment, the Canadian GDP and the US core PCE are the most significant macro releases today.

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