At the January meeting, Fed members first mentioned their plans for 2019, and in particular the possibility of two more interest rates. For just five days, between February 7th and 12th, economists' expectations of interest rates rose sharply. This comes amid strong inflation that the US economy is able to realize.
If on February 7 economists expected 3 interest rises in 2018. and two more in 2019, the expectations are for 4 rises in 2018 and two more in 2019, with interest rates reaching 2.75%.
At this meeting today at 21:00, investors will be watching very closely for the Fed members, and especially whether the market adjustment will not make them reflect on the number of promotions this year. If the Fed does not pay attention to the market correction and high yields on US bonds, and at the same time confirms its intentions for 4 rises in 2018 and another two in 2019, it is likely that the indices will move back to the bottom formed earlier this month.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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