USD: The Fed Sticks To Its Guns For Now; We
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USD: The Fed Sticks To Its Guns For Now; We

The Fed still intends to raise rates in December. While they are perplexed with inflation, Yellen sounds confident.

Here is their view, courtesy of eFXnews:

CIBC FX Strategy Research comments on today’s FOMC September policy decision.

“The Fed didn’t hike rates, and did announce the start of its balance sheet reduction program. Everybody actually knew both of those outcomes, so the focus on what was said about rate hikes down the road.

“In particular, the median forecast sticks to the view that there is one more hike this year, and three more next year, but the target for 2019 and beyond is slightly flatter, with a “long run” target ot 2.75% (vs the prior 3%). Four FOMC members dont see a hike this year, but one is looking for two, with the rest looking for one hike.   Core PCE forecasts were a bit lower for this year, with real GDP a bit stronger, but median forecasts beyond this year are little changed for both growth and inflation.

Bullish for the US$ vs. other majors, bearish for the bond market, as  the Fed sticks to its guns for now.  We’re maintaining  our call for a quarter point hike in December, and two further hikes next year.” CIBC argues.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.