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Economists: The Fed's wording adjustment is unexpected, and the uncertainty has actually dropped significantly.
According to Mars Finance, on July 31, Kathy Bostjancic, Chief Economist of Allstate Life Insurance Company, stated that unexpectedly, the Fed removed the previous wording regarding the reduced uncertainty about the economic outlook from its policy statement, instead emphasizing that uncertainty "remains high."
In our view, although uncertainty still exists, the uncertainty has actually decreased significantly as the trade and tariff situation becomes clearer.