Federal Reserve policymakers are widely expected to increase the target for the federal funds rate from 1% to 1.25% on Wednesday. Traders are pricing in close to a 100% chance of this happening so any surprises will be to the downside. Since last December, the Fed has been expected to raise the policy rate another … Continue reading Delays in Trump’s Agenda, Debt-Ceiling Will Force Fed to Pass on September Rate Hike

Mideast unstoppable tensions’ shadows had always direct influence on the financial markets since the 70s of the previous century. However, the surface aspects of every single dilemma are usually hiding a devil fact in the details. On June 4th a sudden rift between Arab countries took place amid major political and economic events. Saudi Arabia, … Continue reading Qatar in Boiling Water

When the Fed raised its benchmark interest rate last December, it forecast three rates during 2017. At the time, it cited an improving economy and labor market as the reasons for its lofty projections. It also projected slightly faster increases the next few years amid the prospect of a massive government stimulus. The forecast for … Continue reading Falling Yields and Rising Gold Telling Markets Fed Will Limit Future Rate Hikes

With the Federal Reserve’s May 3 policy minutes injecting an air of caution into the outlook for U.S. interest rates last week, investors are going to put increased weight on Friday’s U.S. Non-Farm Payrolls report. The Federal Open Market Committee minutes said that most officials judged “it would soon be appropriate” to tighten rates again, … Continue reading Yea or Nay for the Fed after NFP, Consumer Inflation Data