Wednesday Sept 26: Fed Agenda

Fed funds futures odds of a U.S rate rise before the end of the year have climbed above +60% after Fed Chair Janet Yellen said yesterday that the bank should be “wary of moving too gradually.” She said that it would be “imprudent to wait” for inflation to hit the +2% target before tightening further.

Capital markets will be eyeing today’s agenda for Fed speakers for clues to timing of future U.S rate hikes. The Fed rotation begins with Minneapolis Federal Reserve President Neel Kashkari speaking at 9:15 a.m., St. Louis Fed President James Bullard at 1:30 p.m., Governor Lael Brainard at 2:00 p.m., and Boston Fed President Eric Rosengren taking the evening slot at 7:00 p.m.

Also keeping markets occupied will be the White House unveiling of Trump’s Tax plan. It’s rumored to include a corporation tax cut from 35% to 20% and a reduction in the top individual rate to 35%, while Congress will be allowed to decide whether to impose a higher rate on top earners.

Forex heatmap

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell