Delivering Global Macro Investment Insights

DeSaque Macro Research

DeSaque Macro Research Limited was formed by Said DeSaque in April 2012 with the view to delivering global macro investment insights aimed at providing new ideas to clients.

Said DeSaque has over 26 years of experience working as a professional economist in financial services. Prior to establishing DeSaque Macro Research, Said held positions as Senior Economist at Robert W Baird and William Blair. He began his career as a graduate at PaineWebber in 1986, where he eventually became Head of the London Economics Department.

Said takes a very keen interest in international relations, along with their implications for economic development. His research interests include the economic transformation of China and its implications for global capital markets, particularly in the United States. He is a member of Chatham House in London.

The US economy and capital markets have historically been Said’s main focus of attention. He frequently presents his views to institutional investors in diverse geographic locations. In recent years, Said has also been carefully monitoring economic developments in Asia, particularly China and Japan.

Global Economist, DeSaque Macro Research

Said Desaque

Global Economist

Macroeconomics

Low inflationary expectations have finally forced the Federal Open Market Committee (FOMC) to become even more dovish at its last policy meeting due their inherent stickiness.Although benign inflationary expectations have lowered the bar for cutting the federal funds rate, incoming economic data will ultimately determine whether any reductions actually come into fruition.Since the beginning of 2018, the Fed has been encountering rising political pressure from the Trump Administration that has ultimately forced Chair Powell, despite his attempt to display policy autonomy, onto the back foot.The Fed is facing rising risks to its independence via overt political appointments onto the Board of Governors, while Modern Monetary Theory (MMT) has supporters on both sides of the US political divide.Meanwhile, President Trump has significantly lowered the bar in selecting candidates for Fed Governor vacancies, notably Stephen Moore, while also ignoring the historic convention of respecting Fed independence to pursue their dual mandate.The Fed's decision to hike the federal funds rate last December could prove very costly, both economically and politically, particularly if the US economy enters recession later this year or in 2020.

Low inflationary expectations have finally forced the Federal Open Market Committee (FOMC) to become even more dovish at its last policy meeting due their inherent stickiness.Although benign inflationary expectations have lowered the bar for cutting the federal funds rate, incoming economic data will ultimately determine whether any reductions actually come into fruition.Since the beginning of 2018, the Fed has been encountering rising political pressure from the Trump Administration that has ultimately forced Chair Powell, despite his attempt to display policy autonomy, onto the back foot.The Fed is facing rising risks to its independence via overt political appointments onto the Board of Governors, while Modern Monetary Theory (MMT) has supporters on both sides of the US political divide.Meanwhile, President Trump has significantly lowered the bar in selecting candidates for Fed Governor vacancies, notably Stephen Moore, while also ignoring the historic convention of respecting Fed independence to pursue their dual mandate.The Fed's decision to hike the federal funds rate last December could prove very costly, both economically and politically, particularly if the US economy enters recession later this year or in 2020.

Fed Policy Independence: Facing the Biggest Challenges in Decades