www.varchev.com

Should we expect surprises from the FED in 2019?

Rating:

12345
Loading...

How long will the Fed's patience continue? What tolerances have they assigned to interest rates compared to the economic performance of the economy? What does this mean for their future policy?

The fact is undisputed. The US economy is stable and the FED hit the brakes on time. Whether under Trump pressure or by real judgment, the dot plan they had up to now is no longer up to date. What does the future mean? We can not guess, but if we rely on the facts as an argument, it is clear that the Federal Reserve will refrain from a future interest rate move, at least for this year. Why? Because they may have realized that tightening monetary policy, along with systemic risks around the globe and inflating the corporate debt bubble and expectations for a weak reporting season, would also lead to a serious risk of "hindering" US economic growth. In order to prevent this happening, the FED decided to remain in a standstill position. See how the economy will develop with current interest rates. Meanwhile, the outcome of the trade negotiations will also be monitored.

Last December, the forecast was for two interest rises this year. Given the new circumstances, there are no expectations.

"Waiting Policy" is a wise move that undoubtedly calms the markets and the morals of the US President. But let's not relate Powell's economic decisions to the political scene. And why is it bad to politicize central banks, you can find out here.


 Trader Martin Nikolov

Read more:

RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance

London


25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256

Universal numbers

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.

chat with dealer
chat with dealer
Cookies policy