A FED in Flux

FED IN FLUX: In a surprise announcement, the Federal Reserve said Vice Chairman Stanley Fischer will resign next month for personal reasons, leaving a fourth vacancy on the U.S. central bank’s seven-member governing board. The unexpected departure of Fischer, a widely-respected economist, adds to a leadership vacuum at the top of the Fed as it navigates a difficult path. It plans to slowly raise interest rates as the U.S. economy grows and unemployment falls, even as inflation remains below target, complicating its future course.

NUCLEAR TENSIONS: North Korea’s nuclear program remains in the headlines, though investor concerns have faded somewhat as the U.S. seeks the toughest-ever U.N. sanctions on the country in a resolution that would go to a vote Monday. Meanwhile, the U.S. military completed placing more launchers for the high-tech U.S. missile-defense system installed in South Korea to better cope against Pyongyang’s threats.

QUOTEWORTHY: “Surprises galore are greeting Asia traders as we digest the astonishing overnight headlines,” said Stephen Innes, head of Asia trading at OANDA. Fischer’s resignation, the debt deal and an unexpected rate hike by Canada’s central bank on strong economic growth “all caught market watchers by surprise,” he said.

The Washington Post


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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes