Fed holding rates steady while the ECB cuts. Who will blink first? ...Middle East

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Fed holding rates steady while the ECB cuts. Who will blink first?
A snippet from Bank of Montreal on the new widening monetary policy divergence, addressing "how long Powell can retain terminal as the ECB and Bank of Canada have started normalizing rates lower'.There are a few conceivable outcomes assuming that global central banks aren’t comfortable with an ever-widening divergence of policy rates1. FOMC could begin cutting in September – an assumption that will either be supported or challenged on Wednesday2. the ECB and BoC could pause after lowering rates another quarter-point or two – characterizing the effort as ‘fine-tuning’ rather than the beginning of a steady march toward neutral3. Another, far less likely outcome would be another surge in globa

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