On a day of announcements involving the Federal Reserve it was a keyword used that fueled speculation of who the new Fed chairman will be catching the attention of the markets.
First up was the Fed base rate decision which really didn’t surprise anyone – they took no action as expected and kept rates at 1.25%. So far in 2017, the Fed has raised the base rate twice and the expectation is that they will raise rates once more in December.
The anticipation of interest rate hike in December was further increased thanks to the word “solid” being used to describe the US economic recovery in the statement which followed.
With the US economy expanding by 3% in the last quarter which means the US is on its best six-month streak of GDP growth since 2014, with many analysts beginning to think that an interest rate hike next month might be a full gone conclusion.
The only fly in the ointment is that inflation is still way below the target rate of 2% with it currently at 1.3%.
Today US President Donald Trump is expected to introduce to the world his choice for the new Fed Chair.
According to rumours, Jerome Powell is suspected to be Trump’s man of choice to replace Yellen when her term expires in February. However, if that is the case he will be the only one of nominees that will have to be approved by the Senate before taking over one of the most coveted positions in the financial world.
Whoever it ends up being, they will inherit an economy which though has low inflation, accelerating growth and unemployment which is at a 16 year low, giving the new chair the room to continue next year to gradually raise interest rates.
Market is fairly muted currently, with EUR/USD at the time of writing trading 1.1641, USD/JPY at 114.03 and Gold at $1278.42.
The post “Solid” and a new chair: Fed base rate decision and the new Fed Chairman? appeared first on Forex.Info.
The post “Solid” and a new chair: Fed base rate decision and the new Fed Chairman? appeared first on Forex news forex trade.