The consensus is an obvious hold at the current level 5.25% but wednesday's statement could still, as always, have major ramifications on USD depending on what the tone and strength of the wording is. Fed speeches lately have been pretty bland with no real clues, but I think wednesday might shake things up.
Stocks are soaring at record highs, oil prices are lowering (possibly long-term), housing is slowed but is not cold (housing starts last week high than expected), unemployment rate is down, CPI was more negative than expected but core CPI is right on, PPI was much lower than expected. Seems like a mixed bag of economic news, who knows exactly how the fed will interpret that or what the big money is anticipating.
I think that if the fed reiterates its point about being more concerned with immediate inflation then that will obviously help the dollar, but if it seems to dismiss previous inflation concerns in favor of a more growth centered tone then its going to hurt the dollar.
What do you all think?
Stocks are soaring at record highs, oil prices are lowering (possibly long-term), housing is slowed but is not cold (housing starts last week high than expected), unemployment rate is down, CPI was more negative than expected but core CPI is right on, PPI was much lower than expected. Seems like a mixed bag of economic news, who knows exactly how the fed will interpret that or what the big money is anticipating.
I think that if the fed reiterates its point about being more concerned with immediate inflation then that will obviously help the dollar, but if it seems to dismiss previous inflation concerns in favor of a more growth centered tone then its going to hurt the dollar.
What do you all think?
