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The Federal Reserve will probably not surprise the market today and keep the current Federal Funds rate unchanged while leaving the 600 Billion Dollar stimulus in place as economy is showing moderate signs of recovery.
The real market mover will probably be the accompanied statement, where Bernanke is expected to take notice on the recent improvement in Consumer Spending, Consumer Confidence, and perhaps improvement in recent credit and bank loans.
FOMC will be releasing its Federal Funds Rate today and it is widely expected that Bernanke et al will keep rates unchanged at the current level, 0.25%, while keeping QE2 at the 600 Billion target unchanged.
FOMC will be releasing a statement along with the Federal Funds rate decision today, and it is very likely that the long anticipated QE 2, or second round of quantitative easing will be announced today.
Out of 56 economists surveyed by Bloomberg, 53 stated that an announcement of sort on QE will take place tomorrow, while 3 disagreed. However, don’t be fooled by the majority rules in this case, because this is where it ends… Out of the 53 that agreed, only 29 believed that the Feds will announce a 500 Billion initial purchase, while 7 predicted a modest announcement of 50 to 100 billion of monthly purchases, with the rest (17) remain undecided.
The FOMC will be releasing a statement regarding future monetary direction along with the Federal Funds Rate decision, which is expected to be kept at the current level of 0.25%.
The focus of the market in the past few weeks has been on the speculation of further monetary easing by the Feds in the form of expanding its balance sheet by introducing another Quantitative Easing measure, or QE II (II being the second one).
FOMC is going to release its short-term interest rate decision today and most analysts agree that FOMC will keep current rates unchanged especially after the series of worse than expected economic data during the past few weeks, including the disappointing NFP (Nonfarm Payroll) Employment last Friday.
However, even though there is no chance for a surprise rate change, as predicted by the chart left, (0.0%~0.25% is about 100% probability) the real focus is still on the FOMC statements on future monetary policy.
FOMC is going to release its short-term interest rate decision today and most analysts agree that FOMC will keep current rates unchanged especially after the series of worse than expected economic data during the past few weeks, including but not limited to housing, employment, and retail sales.
RBNZ (Reserve Bank of New Zealand) will be releasing its interest rate decision today and it is widely expected that Gov. Bollard will hike rates today from the current level of 2.50% to 2.75%; here is the forecast:
5:00pm (NY Time) RBNZ Rate Decision Forecast 2.75% Previous 2.50%
ACTION: NZD/USD BUY 3.00% SELL 2.50%
According to analysts, RBNZ will be following RBA’s (Reserve Bank of Australia) and BOC’s (Bank of Canada) examples and start its rate tightening policy in today’s meeting. Out of 15 analysts surveyed by Bloomberg, 13 have forecasted a hike of 25 basis point and 2 remained at unchanged…
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