Morning Bid – G7 disinflation cheer as Fed decides

However the Federal Reserve spins it later, there’s some relief in other G7 economies at least that the disinflation process hasn’t completely stalled yet – offering some encouragement to badly bruised bond markets. As the Fed gets set to announce its latest policy decision and quarterly economic and rate projections on Wednesday, markets seem fairly comfortable with the state of play. After weeks of back and forth, futures are now priced for a first cut by July and 75 basis points of easing through the full year – with eyes on chair Jerome Powell’s press briefing for any discussion on the Fed’s balance sheet runoff and also on policymakers’ “dot plot” on projected future rates.