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...

2018-04-19 John Benjamin Read more
ECB meeting minutes paint a dovish picture

The European Central Bank released its monetary policy meeting minutes last week for the meeting that was held earlier in March this year. Policymakers expressed concerns on the risks of a full fledged trade war against the United States and also showed concern on the rising exchange rate. The ECB's meeting minutes covered the monetary policy...

2018-04-19 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

The Federal Reserve is widely expected to raise interest rates by 25 bps in today’s meeting. Markets are fixated on whether the central forecasts of FOMC members will shift towards signalling 4 rate hikes this year from the current forecast of three rate hikes. Their views on growth and inflation will also be of relevance. 3 or 4? Those wh...

2018-03-28 Ashraf Laidi 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 FOMC meeting

The FOMC gradual rate hiking clearly sustained the stock markets and indices along with stocks which enjoyed a sustained bullish rally. This has been going on since the 2008 Recession. Volatility hit record lows in the 4th quarter of 2017 and this was obviously caused by investors' complacency and buying euphoria. The buying euphoria was s...

2018-03-23 Richard Tataru Read more
March 2018 Monthly Outlook

The U.S. dollar was seen making a comeback in the month of February as the once deemed to be weak currency was seen making signs of a temporary bottom. The sentiment in the U.S. dollar was lifted by a mix of broad fiscal and monetary policy signals. Although no major changes were seen in the month of February, the potential talks of President...

2018-03-23 John Benjamin Read more
new Fed chairman Powell

Economic Outlook Has Improved The US Dollar strengthened in late trading yesterday in reaction to comments made by new Fed chairman Powell during his first testimony. Perhaps the most market moving comments were those in reference to how the Fed’s economic outlook has developed since the December FOMC. Speaking during the testimony new Fed chai...

2018-03-12 James Harte 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