The Fed is expected to hold the Federal Funds Rate at 5.25-5.50% at its 31st July meeting at 2pm ET, but is also expected to signal that a rate cut is coming at the next, September, FOMC. Since there are no new SEPs due at this meeting, market participants will be on the look out for any commentary or guidance laying the groundwork for a September cut, although according to Newsquawk, there is unlikely to be any explicit commitment, and there is plenty of data between now and the September 18th meeting as the Central Bank continues its data-dependent approach. As a result, traders will be attentive to the statement to see if they adjust their language on guidance or inflation. Chair Powell – whose presser begins at 2:30pm ET – will also be in focus, and he may offer similar comments to his recent appearances, where he said that the last three inflation readings do add confidence that inflation is returning to target.

Some more details on what to expect tomorrow courtesy of Newsquawk

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