In times like these, as the saying goes, the tough get going. In financial markets, though, when the going gets tough, the Fed gets going, with rate cuts, accommodative forward policy guidance, even asset purchases (aka quantitative easing or QE). This is what market participants have come to depend on over the years, with the post-global financial crisis years cementing this concept of the “Fed put,” because the Fed has given them every reason to expect support in times of market volatility.
Looking ahead to next week, the calendar features US nonfarm payroll data, global purchasing managers’ indexes (PMIs), and central bank meetings in Australia and Canada.