As well as the ongoing situation in Iraq investors are watching and waiting for news from the US Federal Reserve. The key Federal Reserve FOMC (Federal Open Market Committee) meeting begins on Tuesday with Chair Janet Yellen due to give a press conference on Wednesday. Traders will be looking for clarity on the end of the asset purchase programme which has swelled the balance sheet of the Fed to over $4.3 trillion since the financial crisis of 2008/2009. Interest rate expectations in late 2014 and 2015 also are in focus, especially after the UK Bank of England governor Mark Carney surprised the City telling guests at the Mansion house that UK interests rates could start to rise in late 2014.
In March, the FOMC forecast a 2014 growth rate of 2.9%, with unemployment ending 2014 at 6.2%, with the US struggling to hit this growth rate and the latter on track after the unemployment rate registered 6.3% last month. Expectations are that the FOMC will revise forecasts for growth to around 2.5% and for unemployment to finish 2014 at 6%.
The FOMC is expected to cut the Fed’s asset purchase programme from $45 billion a month to $35 billion a month. Analysts are hoping that Yellen will give some clear clues as to the likely timing of interest rate increases in the US and hoping that her comments about around 6 months on at a meeting in March were off the mark.
Expect plenty of action at the end of Wednesday as the FOMC draws to a close.
Contrarian Investor UK
IMPORTANT: The posts I make are in no way meant as investment suggestions or recommendations to any visitors to the site. They are simply my views, personal reflections and analysis on the markets. Anyone who wishes to spread bet or buy stocks should rely on their own due diligence and common sense before placing any spread trade.
by contrarianuk
Federal Reserve meeting and Iraq in focus this week
Jun 16, 2014 at 11:11 am in Market Commentary by contrarianuk
As well as the ongoing situation in Iraq investors are watching and waiting for news from the US Federal Reserve. The key Federal Reserve FOMC (Federal Open Market Committee) meeting begins on Tuesday with Chair Janet Yellen due to give a press conference on Wednesday. Traders will be looking for clarity on the end of the asset purchase programme which has swelled the balance sheet of the Fed to over $4.3 trillion since the financial crisis of 2008/2009. Interest rate expectations in late 2014 and 2015 also are in focus, especially after the UK Bank of England governor Mark Carney surprised the City telling guests at the Mansion house that UK interests rates could start to rise in late 2014.
In March, the FOMC forecast a 2014 growth rate of 2.9%, with unemployment ending 2014 at 6.2%, with the US struggling to hit this growth rate and the latter on track after the unemployment rate registered 6.3% last month. Expectations are that the FOMC will revise forecasts for growth to around 2.5% and for unemployment to finish 2014 at 6%.
The FOMC is expected to cut the Fed’s asset purchase programme from $45 billion a month to $35 billion a month. Analysts are hoping that Yellen will give some clear clues as to the likely timing of interest rate increases in the US and hoping that her comments about around 6 months on at a meeting in March were off the mark.
Expect plenty of action at the end of Wednesday as the FOMC draws to a close.
Contrarian Investor UK
IMPORTANT: The posts I make are in no way meant as investment suggestions or recommendations to any visitors to the site. They are simply my views, personal reflections and analysis on the markets. Anyone who wishes to spread bet or buy stocks should rely on their own due diligence and common sense before placing any spread trade.