Home/Central Bank Watch/Forex News Round Up/USD

Three Fed Officials Start Prepping Market For Post Stimulus Economy

Share Print 0

In the last week, three vocal Federal Reserve officials have been urging their colleagues to stop filling up the proverbial punch bowl.

Not only do they want the Fed to stop buying bonds (there’s already a plan in place to eliminate those as early as October) — they also want the central bank to raise its short-term interest rate sooner than investors are expecting.

This isn’t just economist talk. Doing so could raise the rates on everything from mortgages and small business loans, to credit cards and auto loans, thereby tightening financial conditions throughout the U.S.

“I believe the time to dilute the punch is close upon us,” Dallas Fed President Richard Fisher said in a speech at the University of Southern California on Wednesday.

via CNN

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza

@alfonso_forex

Back to Top