Fed Policy Could Diverge from ECB, BOE into 2027 -- Market Talk
Dow Jones2026/07/27 15:361536 GMT - While markets price in just over 50 basis points of hikes at the Federal Reserve, Bank of England and European Central Bank by mid-2027, there is likely to be a divergence in policy paths into next year, Capital Economics' Neil Shearing says in a note. Should the Iran war come to a close, energy prices will fall back and domestic economic fundamentals will become the main driver of monetary policy, he says. Yet underlying domestic inflation pressures are weaker in the U.K. and eurozone. The U.S. looks different, with fiscal policy also remaining looser. It's becoming difficult to justify the priced-in tightening at the ECB and BOE, though the Fed will likely resume tightening before long, Shearing says. (edward.frankl@wsj.com)
(END) Dow Jones Newswires
July 27, 2026 11:36 ET (15:36 GMT)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
PNC Bank Launches USDC Payment Acceptance for Corporate Clients
British Pound tumbles below 1.33 post hot US CPI, Fed hawkish rhetoric
Morgan Stanley warns: old storage prices are peaking, supply and demand may turn relaxed by 2028
Morgan Stanley pointed out that after the U.S. midterm elections, it is expected that about 20% of the new data center capacity in the United States originally planned for 2028 will be postponed to 2029. This may cause a "gap" in the supply chain in 2028, resulting in the risk of excess inventory of legacy storage. Legacy storage is less bound by long-term fixed price contracts, so a narrowing supply-demand gap could lead to significant price fluctuations. The above analysis refers only to legacy storage, including DDR3/4, SLC/MLC NAND, and NOR flash.
Crypto prices
More
