The minutes of the Federal Reserve's latest policy meeting show that the governors are far from reassured by inflationary pressures.
While some were prepared to raise policy rates further if necessary, most were satisfied with the current level of interest rates and were prepared to keep them on hold for longer. This is not enough to reassure those betting on a rapid decline in US interest rates.
But remember that this meeting ended on 1 May. Since then, retail sales have slowed, as has inflation, while the unemployment rate has been trending upwards, with fewer jobs being created than in previous months. Indicators that are therefore consistent with a gradual cooling of the economy, a scenario favoured by the Fed.
The markets are currently pricing in two rate cuts in the US, the first of which is expected in September. This is a scenario that should keep the US economy in good shape over the coming quarters.
We remain invested in the United States, both on the bond and equity markets.
