• Latest
  • Trending
  • All

Fed leaves rates unchanged – Three experts on what that means

September 16, 2020 14:31
Equities struggle amid economic and China-related concerns

Equities struggle amid economic and China-related concerns

December 29, 2022 08:55
Dollar lacks upside momentum due to lower Treasury yields

Currencies stuck in ranges as New Year holiday looms

December 28, 2022 07:01
Stocks gain, dollar eases ahead of job market data

Dollar pressured by positive risk sentiment in thin markets

December 27, 2022 04:50
Dollar lacks upside momentum due to lower Treasury yields

Dollar tries to shrug off the pressure

December 26, 2022 05:13
Investors spooked by strong US data

Investors spooked by strong US data

December 23, 2022 11:55
Dollar lacks upside momentum due to lower Treasury yields

Dollar back under pressure after short-lived relief

December 22, 2022 05:17
Risk demand reemerges cautiously, but caution remains in place

Risk demand reemerges cautiously, but caution remains in place

December 21, 2022 08:49
Dollar lacks upside momentum due to lower Treasury yields

US dollar resists selling pressure

December 20, 2022 10:44
Market sentiment dented by recession fears

Market sentiment dented by recession fears

December 19, 2022 02:53
Dollar lacks upside momentum due to lower Treasury yields

Greenback stays on the defensive nearly across the board

November 16, 2022 05:34
Investor sentiment improves, but gains limited

Investor sentiment improves, but gains limited

November 15, 2022 05:46
Dollar lacks upside momentum due to lower Treasury yields

Dollar licks wounds after plunge

November 14, 2022 05:05
  • Terms & Сonditions
  • Contact
Tuesday, February 7, 2023
FWNews - pulse of the forex market
  • FUNDAMENTALS
    Equities struggle amid economic and China-related concerns

    Equities struggle amid economic and China-related concerns

    Stocks gain, dollar eases ahead of job market data

    Dollar pressured by positive risk sentiment in thin markets

    Investors spooked by strong US data

    Investors spooked by strong US data

    Risk demand reemerges cautiously, but caution remains in place

    Risk demand reemerges cautiously, but caution remains in place

    Market sentiment dented by recession fears

    Market sentiment dented by recession fears

    Investor sentiment improves, but gains limited

    Investor sentiment improves, but gains limited

    Risk sentiment keeps deteriorating, dollar climbs

    Stocks celebrate US inflation, dollar slumps

    Virus, US-China tensions hit global markets

    Market sentiment turns cautious amid events in the US

    Investors look indecisive ahead of another volatile week

    Investors look indecisive ahead of another volatile week

  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage
No Result
View All Result
FWNews - pulse of the forex market
  • FUNDAMENTALS
    Equities struggle amid economic and China-related concerns

    Equities struggle amid economic and China-related concerns

    Stocks gain, dollar eases ahead of job market data

    Dollar pressured by positive risk sentiment in thin markets

    Investors spooked by strong US data

    Investors spooked by strong US data

    Risk demand reemerges cautiously, but caution remains in place

    Risk demand reemerges cautiously, but caution remains in place

    Market sentiment dented by recession fears

    Market sentiment dented by recession fears

    Investor sentiment improves, but gains limited

    Investor sentiment improves, but gains limited

    Risk sentiment keeps deteriorating, dollar climbs

    Stocks celebrate US inflation, dollar slumps

    Virus, US-China tensions hit global markets

    Market sentiment turns cautious amid events in the US

    Investors look indecisive ahead of another volatile week

    Investors look indecisive ahead of another volatile week

  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage
No Result
View All Result
FWNews - pulse of the forex market
No Result
View All Result

Home » Fed leaves rates unchanged – Three experts on what that means

Fed leaves rates unchanged – Three experts on what that means

by FWNews
September 16, 2020 14:31
in News
0

The Fed left rates unchanged in its last meeting before the 2020 presidential election in November. It also indicated rates were unlikely to rise until at least 2023.

Three experts weigh in on what the Fed decision means.

David Kelly, chief global strategist at JPMorgan Asset Management, said this is unprecedented stimulus. 

“I don’t think we truly appreciate just how much things have changed over the last year. I mean, up until this point throughout the entire recovery from the Great Financial Crisis, we were trying to get there just through lower interest rates alone. And frankly, you know, low long-term interest rates aren’t going to stimulate anything. But now what we’re doing is essentially monetizing the debt. The Federal Reserve has already lent the federal government over $2 trillion this year. … And regardless of who wins the next election, you could have deficits of between $1.5 [trillion] and $2 trillion over the next two years after this fiscal year. If you’ve got that kind of fiscal stimulus and the government’s able to do it essentially for free because the Federal Reserve’s lending the money, that is very stimulating.”

John Bellows, portfolio manager at Western Asset, said the Fed telegraphed their next moves. 

“I think the reason that the Fed did it today was precisely to tell you what the policy would be even after Covid and that the policy would be easy, the policy will be at zero. And I think the Fed went out of their way to speed up the announcement; they did not wait for the all-clear. … Instead they’re telling you now, they’re telling you now what the policy is going to be after Covid, and it’s going to be easy. And the reason it’s going to be easy is because they need to get inflation back up. They need to address this unevenness in the recovery.”

Mona Mahajan, U.S. investment strategist at Allianz Global Investors, sees favorable conditions for the market. 

“I think this is a case of ‘Don’t fight the Fed.’ We have low rates now at least through 2021, probably through 2022 as well until we get a real tried-and-true recovery, real signs of inflation picking up in that backdrop in this low-rate environment. The TINA effect — there is no alternative — comes front and center. That means areas like equities, parts of the credit markets, even gold, as we mentioned earlier, all could be supported over the next few months, few quarters. Keep in mind, we do have some periods of volatility ahead of us. Of course, we’re getting through an election period and potentially contested election period. But those are walls of worry that the market will climb and perhaps even tactical opportunities, so I’ll leave it at that.”

Disclaimer

Share2Tweet1
ADVERTISEMENT
FWNews

FWNews

Track the pulse of the market

Related Posts

Equities struggle amid economic and China-related concerns
Fundamental analysis

Equities struggle amid economic and China-related concerns

December 29, 2022 08:55
16
Dollar lacks upside momentum due to lower Treasury yields
Technical analysis

Currencies stuck in ranges as New Year holiday looms

December 28, 2022 07:01
12
Stocks gain, dollar eases ahead of job market data
Fundamental analysis

Dollar pressured by positive risk sentiment in thin markets

December 27, 2022 04:50
12
Dollar lacks upside momentum due to lower Treasury yields
Technical analysis

Dollar tries to shrug off the pressure

December 26, 2022 05:13
12
Investors spooked by strong US data
Fundamental analysis

Investors spooked by strong US data

December 23, 2022 11:55
11
Dollar lacks upside momentum due to lower Treasury yields
Technical analysis

Dollar back under pressure after short-lived relief

December 22, 2022 05:17
16

Leave Your Opinion Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Canada’s financial system is resilient amid global uncertainty, Senior Deputy Governor Wilkins says

November 19, 2019 17:22
10
Global stocks retreat after a plunge on Wall Street

Global stocks mostly higher to start the week and the month

November 1, 2021 14:42
21
A slow start to the week in FX markets

Dollar is back under pressure after a short-lived bounce

August 24, 2020 08:45
17

Ads

Shneider Electric

Most Popular

A slow start to the week in FX markets
Technical analysis

Dollar regains ground to start the week

January 25, 2021 07:25
118
A slow start to the week in FX markets
Technical analysis

Greenback advances modestly amid strong data

May 28, 2021 07:38
110
Kim Jong Un reportedly says his nuclear weapons guarantee there will be no more war
News

Kim Jong Un reportedly says his nuclear weapons guarantee there will be no more war

July 28, 2020 08:29
95
FWNews

Copyright © 2022 FWNews

  • Terms & Сonditions
  • Contact
No Result
View All Result
  • FUNDAMENTALS
  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage

Copyright © 2022 FWNews