According to Greg Gibbs, Analyst at Amplifying Global FX Capital, the Fed hasn’t been under pressure yet, but pressure is starting to build.
Key Quotes
“As the FOMC meets this week, the labour market is tightening to a crucial degree, inflation has crept back to approach its target, wage growth is still modest, but creeping up, interest rates are getting closer to perceptions of neutral, and government borrowing is higher and not sustainable over the long term.”
“There is some stress in emerging markets. Trump has started a trade war with his allies and China. He has pulled out of an Iran deal and a climate change deal and has arguably scuttled years of goodwill and US power internationally.”
“The Fed might not feel the heat yet, but the fire is burning outside its door from domestic and international sources.”
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