Tag : FOMC

The Fed’s dilemma

This chart shows the evolution of the ISM Manufacturing index, the effective Fed funds rate and the employment rate, defined as the civilian employment-population ratio.


US slowdown disbelief

In the US the slowdown in the manufacturing sector is clearly illustrated by the decline in the ISM manufacturing index


Concerns about Chinese growth weigh on European equities

When the Federal Open Market Committee at the end of its latest meeting two weeks ago decided not to hike the federal funds rate, this did not come as surprise. Indeed fixed income markets were only pricing in a small probability of a tightening. More concerning for investors was the comment that international developments had […]


The first rate hike: source of relief or cause for concern?

The meeting of the Federal Open Market Committee today and tomorrow has created significantly more nervousness than is normally the case. Many consider that the time is ripe for a first hike of the Federal funds rate in this business cycle, whereas others argue that it would be better to wait a little bit longer. Views differ and that is what makes a market.


Fed tightening nervousness

The FOMC is meeting next week on 16 and 17 September and nervousness in markets is on the rise. US FOMC is unlikely to raise rates next week. Low inflation and a rising market uncertainty give no reason to rush the normalisation.