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  • Week Ahead – Fed decision to fuel volatility in nervous market

    From xm.com

    video With cracks appearing in the US banking system, markets think there’s a chance the Fed won’t raise rates next week. But considering that the Fed has already taken measures to ease financial stress and that inflation is still raging, the most likely outcome is a rate increase accompanied by high rate projections, which could boost the dollar. The Bank of England and the Swiss National Bank meet as well. Fed dilemma It’s going to be a difficult meeting for Fed officials on Wednesday, who will have to decide whether the priority is to safeguard the stability of the US financial system or fight inflation at ... (full story)

There is no real decision and the Fed won't think twice. They pledged to fight inflation and if they don't at least appear to be trying to do that, then they'll be pilloried. What the Fed cares about most is its reputation for being indispensable. So, rate hikes to continue until the inevitable 'soft landing'.
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