Fed Chair Yellen to raise or not to raise? That is the question: Whether ’tis nobler in the mind to suffer the slings and arrows of the market and “Raise Rates” or to risk a sea of troubles and “Not Raise Rates”. Yes, I agree a little too Shakespearean but that is how the media is portraying this melodrama. The Fed has a pristine record in communicating their path as market friendly even when it was hawkish with the methodical ending of QE. This will be no different.
“If the Fed raises rates today it will likely dramatically lower the path of future rate increases using Fed Board’s future expectation of Fed Funds rates. If the Fed doesn’t raise rates, markets may be initially mollified but it may signal that the outlook is not good. Either way, expect more drama than Trump’s republican presidential debate”, says Voya Global.
The material has been provided by InstaForex Company – www.instaforex.com