The FOMC meeting is one of the key drivers of market movements because most investors pay attention to the statements by those chosen to guide the levers of the world’s financial markets. Market pundits keep pontificating about the nuances of the moment and what they think will happen.
One of the last posts on my very onw forex section, talks about why he think’s they’ll never do it. Some are predicting that the status quo will remain and the dollar will continue its slide and give back some of its gains from earlier in the year when all the hints were for a rate hike in the middle of the year.
As far as my limited understanding serves me, when rates are raised it gets more expensive to borrow money and hence the economy is curtailed. Lowering the interest rate makes it cheaper to borrow money and there’s more of it flushing around in the economy but this causes inflation and so its always a juggling act.
What’s your opinion?
