Fed is trapped, next time the market gets spanked we will see QE4

When do you expect the Fed next interest rate hike? 

Not for a long-time – maybe 2018

Which will be the interest rate level where the Fed will stop hiking at? 

No idea

Do you expect an acceleration in the rate hike pace in the upcoming months? 

Absolutely not – the global economy is not exactly in runaway growth mode

What’s the Fed looking more closely when deciding their monetary policy: employment figures or inflation levels? 

I will be real blunt – The Fed is clueless, they have no idea what they are doing. A bunch of academics tinkering with global markets.

Can the Fed sustain a tightening cycle when all the other major central banks are on an easing one? 

Not a chance

Do you think inflation can be a problem in the long-term if the Fed doesn’t “normalize” its policy soon? 

Inflation already is an issue and will become one as time goes on

Is a return of QE policy something to consider in the mid-to-long term? 

The next time the market really gets spanked to the downside we will see QE4 – how markets react from there will be very key….The Fed is trapped, they know it and there is nothing they can do about it

*This is one of the 31 answers to the FXSurvey. You can read the full results of the survey here.