The Federal Reserve has two main objectives - to ensure maximum employment and keep inflation around 2%. Inflationary pressure has so far remained "under control," as the main reason for this is the rising price of the dollar in recent years, said London & Capital Group Investment Manager Ashok Shah.
The tightening of monetary policy comes either from raising interest rates or from reducing balance sheets. The market does not believe the Fed will fulfill its point plan, but most analysts believe that if the Fed succeeds, it will be somewhat delayed and at high risk of a recession. According to Ashok Shah, by the end of 2017, the Fed will stand firmly behind 3 interest rises, but will certainly rethink its plans for 2018. Overall, it all depends on whether Trump will be able to carry out his election plans. If this does not happen, the Fed does not make sense to be aggressive because the economy will slow down.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.