Most important of FOMC and market reactions

We received the report from the last Fed meeting that took place on 29 and 30 January. It was expected to confirm the dovish position of the Fed, and more importantly, the report places it here. The complete report can be read on this page.

• It is important to monitor the financial markets and how they react
• Part of the current risks have increased their influence
• Investments in business have decreased
• The latest mortgage market data is strong
• A strong labor market, inflation is around the target
• We are experiencing prolonged economic expansion
• According to some FOMC representatives, not all factors and risks are taken into account in the dot plan
• Reserves can reach their maximum performance later this year
• Some respondents were of the opinion that further interest rises would only be effective if inflation exceeded expectations
• Almost all participants were of the opinion that it was a good idea to announce in time the plan to reduce the balance to continue until the end of the year
• Many participants are not sure what moves in monetary policy will be needed in 2019
• Almost all participants agreed to stop the balance cut by the end of the year
• The dollar initially responded with a downward trend towards its competitors, but then strengthened, as the gold, the euro and the pounds suffered the damage.

The indices reacted with a rise at the beginning, but then they turned sharply down. Market participants first accepted the data as dovish as expected, but then the inflation and labor market commentaries, which appeared to be interpreted as hawkish, with the prospects of resuming interest rallies boosting the dollar and weakening stocks and indices.

Read more:

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• The macroeconomic events for today’s trading calendar
• The US government has confirmed the attacks, Trump is calling an emergency staff meeting
• Has the war between Iran and the US started?
• US markets remain under pressure, traders await Iran’s response