The Fed's August protocol will be released at 21:00 and today the focus will be less on raising interest rates, but on central bank independence and on US bond yields. At the moment, the Fed is moving in line with the plan, and the next rise in interest rates seems certain in September. Here are the expectations of the market regarding interest rates:
Any comment on central bank independence will be of interest to traders after US President Donald Trump once again criticized the Fed, expressing disappointment over the interest rate hike. He said he expects Fed chairman Powell to be "more excited" by the tightening policy of the central bank against a background of alleged currency manipulation by the Chinese and Europeans.
It's important now that the Fed will respond to Trump's threats and whether he will be able to prove his independence. A statement from the bank will be seen as support for the USD and will most likely end the speculation that the president has an impact on it. At present, however, such a lack. What we currently know are the market participants' expectations, expressed in percent of the chart above, and the moods among the Fed members, of the Dot Plot below:
Source: Bloomberg Finance L.P.
charts: Used with permission of Bloomberg Finance L.P.
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