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Market Digests Fed, Greenback Consolidates, Antipodeans Tumble
The market has mostly interpreted the Fed's action in line with our thinking. Despite the lowering of the long-run Fed funds rate, the shifting one of the three hikes from 2019 into 2020, and recognizing that the weaker price impulses are somewhat mysterious, the Fed clearly signaled its bias toward hiking rates one more time this year and three next year. The long-term Fed funds rate has trended lower. In March 2015, it was thought by the Fed's dot plots to be near 3.75%. A year later it had been cut to 3.25%. It briefly fell to 2.88% in September 2016 before being lift last December to 3%. The cut now to 2.75% has ... (full story)