Fed Remains Dovish Despite Hotter Inflation; Still Expects Rate Cuts This Year
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The Fed still expects three rate cuts in 2019 despite recent hotter inflation numbers
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Markets had priced in less aggressive Fed policy, but were surprised by commitment to cuts
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Other major central banks like the BOJ and SNB also signaled a dovish tilt toward more accommodation
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Rate cut cycles historically benefit fixed income ahead of the first cut, constructive in next 3 months
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US growth exceptional recently, but global data shows slowing inflation that supports FedCuts
