September focus will be on Janet Yellen
In the last Fed meet, they did nothing on interest rates and the question is what has changed in the last 2 months. Frankly, but for an additional bout of volatility in markets, nothing much has changed. US growth continues to flatter with marginal positive surprises. Inflation continues to stay low due to cheap crude and cheaper commodities. The US continues to attract capital flows from risk-off trade, which has been the investment theme over the last 2 months. So what does all this mean for the Fed decision on rates in September?