Fed Hike Aftermath Series

Fed Hike Aftermath Series

Market odds of Fed hikes are falling fast

Feb 04, 2016 02:17 am UTC| Commentary Central Banks

The markets have always reckoned the Fed would hike fewer times than officials themselves thought but its the swing more than the gap that now catches the eye. Markets priced in close to 3 hikes in 2016 (after the initial...

Fed Hike Aftermath Series

Market now price in no hike from FED in 2016

Feb 03, 2016 10:13 am UTC| Commentary Central Banks

Market participants are now seeing no chance of a hike in 2016, especially as volatility returned in the market. Bank of Japans (BOJ) introduction of negative rates seem to have only paused the selloffs for a day and...

Fed Hike Aftermath Series

Esther George – return of a hawk

Feb 03, 2016 09:37 am UTC| Commentary Central Banks

A well-known hawk and dissenter of FED policy is back on the core-committee of FOMC this year, who will be a decision maker in the board. In the past, Ms. George has remained critique of ultra-loose monetary policy of...

Fed Hike Aftermath Series

Fed to be cautious in tightening policy, to avoid global asset price inflation

Jan 29, 2016 15:06 pm UTC| Commentary Central Banks

The Fed is likely to tighten monetary policy only by as much as markets allow without major turmoil. The Fed will try to avoid any further asset price inflation and ease any bubbles that have already emerged, such as in...

Fed Hike Aftermath Series

After FOMC and BOJ, where does FED hike probabilities stand?

Jan 29, 2016 12:26 pm UTC| Commentary Central Banks

Market participants backed down their expectations for rate hike further into the future, more so after FOMC sounded cautious in this weeks meeting and Bank of Japan (BOJ) introduced negative rates. Market now expects...

Fed Hike Aftermath Series

US Fed likely to hold funds rate target in March

Jan 28, 2016 06:15 am UTC| Commentary Central Banks

The US Fed maintained the Fed funds rate target at 0.25-0.50, on par with expectations. Nevertheless, there were many changes to the central banks statement that indicate that the Fed might keep the rates on hold in March....

Fed Hike Aftermath Series

Dovish Fed keeps its options open

Jan 27, 2016 20:30 pm UTC| Commentary Central Banks

As expected, the Fed expressed concern about the economic outlook due to the recent market turbulence. But it didnt rule out a rate hike in March. The Fed is expected to postpone the next hike from March to June. As...