Fed meeting

FED 2016

Fed Underdelivers With Dovish Dot Plot Weighing On Dollar

Monex Europe | Chair Powell doubled down on the tone struck by the SEP and policy statement in his press conference yesterday emphasising the need to witness substantial progress in the recovery before signalling the exit of post-pandemic policy measures. The tone taken by Powell suggests the Federal Reserve will happily sit behind the curve as inflation overshoots in the coming years, helping to further push back rate expectations and anchor real rates in bond markets.


Fed's balance sheet size

The Fed Officially Adopts A Flexible Inflation Target; Interest Rates Close To 0% Until 2023

Link Securities | After the publication of the Fed’s meeting’s statement and the intervention of Jerome Powell, the central bank’s  “performance” did not end up pleasing everyone. It adhered to the script. The Fed confirmed that the majority of its members do not expect increases in official interest rates until the end of 2023. They also reiterated that they will allow inflation to stay above 2% for a while, until the objective of reducing the jobless rate to pre-pandemic levels is achieved.

And China arrived and defeated the Fed

This Week’s Fed Meeting May See A Third Major Change To Its Dollar Strategy

Monex Europe | Recent meeting minutes and speeches have made it clear the FOMC is considering a range of possible calendar and outcome-based forward guidance. The likeliest outcome is further formalisation of the Fed’s shift away from viewing maximum employment as a constraint that will lead to rate hikes. Powell’s speech may provide a template for what outcome based guidance could look like.


Fed keeps the markets in suspense

Next week’s Federal Reserve meeting ( September 16th and 17th) has investors on tenterhooks. Some Fed members have recently pointed to a possible rate hike in September, raising concerns not only in the markets but also amongst IMF and World Bank leaders.