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On the radar: St. Louis Fed Financial Stress Index eases in July 26 week in anticipation of a Fed rate cut

The St. Louis Fed’s Financial Stress Index eased to -1.367 in the week ended July 26 as markets anticipated additional monetary accommodation from the Federal Reserve on July 31. It remains to be seen if the Fed’s delivery of a 25 basis point cut was enough, or if there will be evidence markets were not happy about the size, or perhaps that Chair Jerome Powell didn’t signal that this was the start of an easing cycle.

 

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