Fed Chairman, Jerome Powell is set to speak today at 2:30 EST. He will most likely have to address the most recent spike in cases that occurred in several states and what his plans are to carry forward. Notably, interest rates are expected to remain unchanged or somewhere in between 0-.25%. Powell may also discuss their current balance sheet of over $6 trillion and possibly an increase in more bond buying, according to Economic Times. High volatility is expected during the discussion. Overall expectation is that the Fed will probably do nothing excessive, and leave most policy unchanged with brief statements of positive forward-looking sentiment.
Federal Interest Rates:
Treasury Yield Curve:
Powell says interest rates will hold as they are, but economic growth is much worse than 'pre-pandemic' levels in the statement.
In the Fed's statement, they said that they would, "support the flow of credit to households and businesses, over coming months the Federal Reserve will increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities at least at the current pace to sustain smooth market functioning, thereby fostering effective transmission of monetary policy to broader financial conditions." Now it's time to wait for the conference in 20 minutes...
2:49 pm EST
Powell mentions economic inequalities saying that they are not related to monetary policy, but fiscal policy. He wants to decrease the unemployment rate and keep a tight labor market. They also plan to continue to buy and hold more mortgage back securities and increase credit flow in the economy. Powell is happy with their current strategy and think the economy is in a good place right now for recovery. Markets are now flat...
EUR/USD Bearish GBP/USD Bearish AUD/NZD Bearish XAU/USD Bullish SPX500 Bearish EU struggles to pass 1.2000s as US markets fall from overvalued prices in the stock market. The pair is back in a support zone showing that price wants to go lower. A break in that support zone (which is a common pattern we see in […]
Last week was rough for the market as the S&P and Nasdaq draw lower lows on the daily chart. The Dow Jones Industrial was the only index to look in the best shape as tech continues to fall under pressure. The main drivers for the market, which have been carrying pairs like GBPUSD and EURUSD, […]
Weekly Forex Forecast for USDCHF, GBPUSD, AUDNZD, XAUUSD (20-25 September 2020) Hey everyone! Welcome to this weeks forex forecast for the week ending September 25th, 2020. I'm TraderBart with A1 Trading, and this week I'll be looking at USDCHF, GBPUSD, AUDNZD & XAUUSD. USD/CHF Zooming out, we can see price is travelling in a strong […]
Politics preventing new financial stimulus The economic recovery in the major global economic powers depends on several important factors. One of the most vital part, the spread of the virus and the government's answers to it. With a decrease in daily cases of COVID-19 to 50,000 in the U.S.A. Yet U.S. A remains the most […]
Our team has received many reports of scammers using our content and pretending to be us. Unfortunately, these accounts are difficult to shut down as there are many that we do not know of. While we will continue to do our best to get these accounts shut down as we receive reports, we are unable to […]
Warren Buffett is one of the most idolised, investors in the world. At the time of writing , his company, Berkshire Hathaway, has a market cap of $495 billion and Buffett himself has a net worth of $79 billion. His approach to value investing, combined with his influence over the companies he invests in , […]