Short Term Stimulus Seen as Less Likely

Federal Reserve policy meeting minutes indicated that the central bank will not be increasing monetary stimulus soon. This decrease in prospective liquidity was followed by a dollar rally and a rise in the treasury yield. The Fed indicated that slower price growth or faltering economic expansion might prompt reassessment.

This is contrasted with continuing uncertainty regarding the European economy. Attention has been particularly focused on Spain, which just recorded the eighth month in a row of increasing unemployment. This has been accompanied by deep austerity measures. The ECB meets tomorrow to decide interest rates for the shared currency and Bloomberg-surveyed economists expect no change.

Source: Bloomberg

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Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental and macroeconomic analysis, Kenny Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in major online financial publications including, Seeking Alpha and FXStreet. Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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