The market reacted positively because of FED dovish statement of gradual pace of tightening in its future actions. Some were anticipating 4 hikes this year but FED only wanted 3 hikes instead which was a relief for the market. Furthermore, there may be some headwinds which will affect the economy like Trump's policies, North Korea, EU, etc. Therefore, FED is having a wait-and-see attitude and will play by ear to determine its interest rate policy.
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http://www.investopedia.com/news/fed-increases-interest-rates-march-meeting/?partner=YahooSA&yptr=yahoo
What's my take on FED move?
I think FED is behind the curve and will need more aggressive hikes in the future as China is exporting inflation to the world. It will take some time for inflation to reach USA and rest of the world. Furthermore, China will continue to sell USD treasuries to defend its yuan which will increase the pressure on interest rates in USA.
http://finance.yahoo.com/news/latest-markets-cautious-ahead-fed-100121707.html
Yellen is waiting for Trump's policies to be unveiled before she will decide on what to do next in FED June meeting.
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