Eurizon Weekly, 7 June 2024. Last week, important political and economic events took place. In Europe, the much-anticipated ECB meeting on the one hand confirmed investor expectations by implementing an initial policy rate cut, while the new inflation forecasts prompted a partial postponement of expectations for the ensuing path of rate reductions. Also in Europe, the elections to renew the European Parliament were held over the weekend. Although the count isn’t over yet, the outcome leans towards a likely confirmation of the current parliamentary majority, as already indicated by voting intention polls. In the US, on the other hand, May data confirmed the labour market’s good state of health, easing potential pressures on the Fed to proceed with a swifter than estimated rate cut cycle. Expectations in this sense will be revised on Wednesday, in light of the May inflation reading. Andrea Conti, Head of Eurizon’s Macro Research & Product Specialist team, takes a closer look. Audio recorded on 07 June 2024.