“Following a series of disappointing global economic data that was recently topped off by Friday’s disastrous U.S. employment situation report, the new economists’ consensus is that the Federal Reserve will announce a new round of easy monetary policy at the end of its June 19-20 Federal Open Market Committee meeting. This is good news for those who were worried that stocks would tumble without active Fed-sponsored accommodation.
Even so, Barclays’ Barry Knapp cautions against getting too excited too soon. “Although the market has begun to look to the Fed for stimulus, equities will likely be much lower before the policy put is exercised,” wrote Knapp in a Friday note to clients.”
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