BNY Mellon senior macro strategist Jeff said softer US labor data and improving
inflation have reduced the urgency for further Fed tightening, but that does not
resolve whether the growth slowdown is controllable or whether market policy
expectations have overshot. He added the global narrative is fragmenting: in the
US the question is whether the Fed can remain patient if inflation risks do not
re-emerge; in Europe focus is shifting from emergency inflation fighting to
growth, fiscal credibility and defense financing.
