Thursday 30th July 2020

“We’re in a tough situation” – that was the response from Jerome Powell to one question during the FOMC press conference this morning. Without offering anything new, he reiterated the importance of fiscal support, without referring to the cliff that could see most support measures finish, without a replacement, tomorrow. Phil Dobbie talks to NAB’s David de Garis about the tone of the conference, which offered little in the way of optimism. Powell highlighted the way the virus has split the fortunes of the US population, evidenced in the US Household Pulse survey overnight. Meanwhile, even though little has changed since yesterday, equity markets are back on the rise. Perhaps disappointing GDP and jobs numbers today (for the US and Germany) will knock the wind from the sails.