FOMC minutes reveal a hawkish bias

The Federal Reserve Bank released its monetary policy minutes from the meeting that was held in March this year. The central bank had hiked interest rates by 25 basis points which was widely anticipated. At the meeting, central bank officials stuck to the baseline scenario of sticking with three rates hikes in 2018. Following the March rate h...

2018-04-24 John Benjamin Read more
US rate hikes for 2018

The Federal Reserve policy maker, Loretta Mester has stated that the central bank should continue raising the interest rates for the remainder of this year and the year ahead. She said that the rate hikes will help the U.S. economy from overheating which could cut short the economic expansion which has been growing with a steady momentum. ...

2018-04-11 John Benjamin Read more
March rate hike approval

The U.S. Federal Reserve went ahead with their March rate hike approval last week on Wednesday in a widely expected move. The fed stuck to the baseline scenario of forecasting two more rate hikes for the remainder of the year. The central bank's decision and forecasts highlighted the growing confidence in the economy spurred by tax cuts and g...

2018-04-03 John Benjamin Read more
March rate hike

The FOMC will be holding its two day meeting which concludes today. Heading into the event, the futures markets have assigned a near 90% probability of a 25 basis point rate hike at today's monetary policy meeting. [caption id="attachment_46947" align="aligncenter" width="804"] Fed funds rate probability - March 21, 2018 (Source: CMEgroup)[/c...

2018-03-23 John Benjamin Read more
March rate hike

Summary: Fed minutes covering the January 30 – 31st meeting showed that policy makers could enact a March rate hike Officials noted that the current economic momentum would be able to sustain further rate hikes Some officials were concerned that inflation still remained low New Fed Governor, Jerome Powell will be giving his first s...

2018-03-23 John Benjamin Read more
Fed Minutes Drive Whipsaws

What happened in the two hours following the release of the January Federal Reserve meeting minutes?  A 1.8% fall in equity indices, accompanied by a rapid jump in bond yields and a broad recovery in the US dollar. The Dow Jones Industrials Average made a 430-pt turnaround in 90 minutes (from 266 pts intraday rally to closing 166 pts in the red)...

2018-03-23 Ashraf Laidi Read more

  Summary: Federal Reserve hiked its benchmark interest rates by quarter percentage point to a target range of 1.25% - 1.50% Two FOMC members voted against the rate hike; Evans and Kashkari The FOMC's economic projections estimated that GDP will rise 2.5%, up from the 2.1% estimates it gave previously FOMC also gave a modes...

2018-01-17 John Benjamin Read more
FOMC

The U.S. Federal Reserve will be concluding its two-day FOMC meeting on Wednesday this week. According to the futures markets, the 30-day Fed funds rate is expected to rise by 25 basis points, bringing the short term interest rates to 1.25% - 1.50%. December's rate hike, now almost a done deal, will be the second rate hike this year. The Fed ...

2018-01-25 John Benjamin Read more
FOMC

The FOMC meeting this week will be interesting as the Fed is all set to announce its balance sheet reduction program. After starting with years of quantitative easing program to stimulate the economy, the Fed will soon start to unwind its Treasury and Mortgage Backed Securities (MBS) starting September. Having signaled its intentions to begin u...

2017-10-22 John Benjamin Read more
federal reserve

With the FOMC meeting due in a week's time, Fed officials hit the news wires last week. Investors were expecting the central bank officials to offer some clues on monetary policy and expectations on the next interest rate hike. The main underlying theme from the various speeches given over the week brought the conclusion that the Fed will remai...

2017-10-22 John Benjamin Read more