This article will be updated throughout the day tracking any news on the FOMC press conference, tracking news, Powell's statements, and results with investor sentiment. This meeting will impact US indices including US30, as well as major currency pairs like GBP/USD, EUR/USD, USD/CAD, etc.
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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:
2:06 pm EST
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...
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Hey everybody, this is a breakdown of some of the macro trends around Gold and some of the pressures it is facing from inflation and the Fed's potential rate hikes. Overview As of 09/26/2021, the Gold Continuous Contract is down -0.75% this week, and -3.79% for the month. Gold is currently caught in a limbo […]
Hey everyone! Welcome to this week's forex forecast for the week ending October 1st, 2021. I'm TraderBart with A1 Trading, and this week I'll be looking at USDJPY, GBPUSD, GBPNZD & XAUUSD. USD/JPY Price closed off for the week just above the resistance at 110.6 in this range bound market. Look out for how price […]