C
Coffee
Guest
...before November's election ?
Next Fed meeting is 20 -21 September.
What are your thoughts ?
Next Fed meeting is 20 -21 September.
What are your thoughts ?
C
Coffee
Guest
Janet Yellen delivered The Federal Reserve's Monetary Policy Toolkit speech yesterday in Jackson Hole, Wyoming which is a lovely holiday retreat by the way.
I'll put up one quote from her speech:
"There is 70% probability that the Federal funds rate will be between 0 and 3.25% by the end of 2017 and between 0 and 4.5% by the end of 2018."
The current Fed funds rate remains at .5% (1/2%).
Now if that doesn't provide one with some serious guidance moving forward then I guess I'm just an old cowpoke when it comes to providing definitive clarity.
Note: The monetary funds rate in Germany and France is 0 , the UK is .25%, Canada .5%, Australia 1.5% ,Thailand 1.5%, New Zealand 2% and Argentina 28.75%
I'll put up one quote from her speech:
"There is 70% probability that the Federal funds rate will be between 0 and 3.25% by the end of 2017 and between 0 and 4.5% by the end of 2018."
The current Fed funds rate remains at .5% (1/2%).
Now if that doesn't provide one with some serious guidance moving forward then I guess I'm just an old cowpoke when it comes to providing definitive clarity.
Note: The monetary funds rate in Germany and France is 0 , the UK is .25%, Canada .5%, Australia 1.5% ,Thailand 1.5%, New Zealand 2% and Argentina 28.75%
C
Coffee
Guest
Hasn't stopped anyone else on this forum from commenting about what goes on in the good 'ole U S of A, has it ?
So give it a whack with a 3-iron , okay. "FORE!"
C
Coffee
Guest
^^^ [ The key words above. ]
Sadly something that affects equity markets and exchanges globally...
nomad97
Resident Geek
From Aug 25th until today - about 2 weeks in American money. Its fair to say, I think, that most people on this forum don't give a rat's ass or care even less about what the Fed will or will not do with the 'rate'. Clearly such high finance is way beyond the means of most of us mere mortals.
Yorky
Fullritis Member
No doubt the reason Coffee has to explain the math(s) to us...
"The current Fed funds rate remains at .5% (1/2%)".
C
Coffee
Guest
I would concur with your thoughts. Well spoken.
Brave world out there if ones oncome is derived from invested equities or is at risk from monetary exchange rates.
More so if both.
Yorky
Fullritis Member
My oncome is at risk from exchange rates, interest rates and various other global financial forces which I have no ability whatsoever to control or predict. So I just hope the price of beer doesn't increase as I wander upon my merry way.
Rice
Resident Smart Arse
Unfortunately for us all, the subject of rates in the US is of utmost importance as the world reserve currency is still the USD and many currencies the Thai Baht for one is inextricably linked with it along with the world crude oil price if the USD appreciates you will feel it as an expat in Thailand. I guess giving a rats arse or not is not going to change your position, though but by knowing this information you might just know why you are going to shit and maybe, just maybe find a way of leveraging yourself out of such shite. But alas I doubt it.
Yorky
Fullritis Member
Assuming that Coffee's interest rates are correct (Thailand 1.5%, New Zealand 2%), I could transfer my hard earnt cash from Thai Baht to New Zealand Dollars but I doubt that it would be productive.
CO-CO
Rather wrinkly & occasionally cantankerous member
I doubt that Makro will accept New Zealand Dollars.
That may cause you to run an exchange rate risk.
As you haven't got a work permit I doubt that your 'hard-earned' cash is in Baht. I suspect it was hard-earned in Sterling and you have already faced an exchange rate risk in converting to Baht.
You could be in the position of converting from Sterling to Baht to NZ Dollars to Baht again. That sets up a nice little gamble on the rates. You could cut out the middle man and use your reserves of Sterling to buy NZ Dollars. Unfortunately, you will get less than you might have got a couple of months ago.
Yorky
Fullritis Member
I think you may have misunderstood my sarcasm, CO-CO.
However, all my hard earnt cash is in Baht, although it wasn't earnt that way.
Ivor the Engine
Nowhere man
CO-CO
Rather wrinkly & occasionally cantankerous member
Geoff - I can usually smell your sarcasm a mile away!
............................. I simply extended the concept.
C
Coffee
Guest
The Hang Seng pared 3% today but the Asian markets are "notoriously volatile and erratic".
I'm sure European markets will bring about some normalcy, eh.
Of course this would have nothing to do with the US Federal Reserve Board of Governors meeting next week , eh.
More likely has to do with Hillary's health, wouldn't one think
I'm sure European markets will bring about some normalcy, eh.
Of course this would have nothing to do with the US Federal Reserve Board of Governors meeting next week , eh.
More likely has to do with Hillary's health, wouldn't one think
nomad97
Resident Geek
Last words from the Fed
With the US Federal Reserve's policy meeting scheduled for 20-21 September committee members must be silent during the preceding week, making no comment after today. They seem to be a bit of a rush to beat that deadline and investors get the impression it might be game-on for a rate hike this month.
On Friday Boston Fed president Eric Rosengren spoke of the risks of waiting too long, saying "a reasonable case can be made for continuing to pursue a gradual normalization of monetary policy". Coming up today are speeches by the Atlanta Fed's Dennis Lockhart and Lael Brainard, a Fed governor.
It is Ms Brainard's appearance that most intrigues investors, not least because it has been shoehorned into the calendar at the last minute. Thus far she has been the most dove-like of doves. Were she merely to want to underline her oft-displayed dovish credentials there would be no need for the urgency. So, the logic goes, she must be about to change sides and talk up a September rate increase. Investors will find out this evening.
With the US Federal Reserve's policy meeting scheduled for 20-21 September committee members must be silent during the preceding week, making no comment after today. They seem to be a bit of a rush to beat that deadline and investors get the impression it might be game-on for a rate hike this month.
On Friday Boston Fed president Eric Rosengren spoke of the risks of waiting too long, saying "a reasonable case can be made for continuing to pursue a gradual normalization of monetary policy". Coming up today are speeches by the Atlanta Fed's Dennis Lockhart and Lael Brainard, a Fed governor.
It is Ms Brainard's appearance that most intrigues investors, not least because it has been shoehorned into the calendar at the last minute. Thus far she has been the most dove-like of doves. Were she merely to want to underline her oft-displayed dovish credentials there would be no need for the urgency. So, the logic goes, she must be about to change sides and talk up a September rate increase. Investors will find out this evening.
nomad97
Resident Geek
The Hang Seng pared 3% today but the Asian markets are "notoriously volatile and erratic".
I'm sure European markets will bring about some normalcy, eh.
Of course this would have nothing to do with the US Federal Reserve Board of Governors meeting next week , eh.
More likely has to do with Hillary's health, wouldn't one think
ECB shock
The European Central Bank rather put the wind up financial markets on Thursday when it failed to announce any expansion of its asset-purchase (quantitative easing) programme. Equity prices fell as investors asked themselves if it really might be true that central banks are running out of ammunition.