Fed to hike March; what could possibly go wrong? - ANZ
Analysts at ANZ explained that President Trump stuck to the script in his first speech to Congress yesterday, promising deregulation, tax cuts and higher infrastructure spending without any of those pesky details that could spoil the fun.
Key Quotes:
"US data was unequivocally strong, and PCE deflator inflation is more or less at target highs. With green lights everywhere you look, market pricing for another Fed hike on 15 March leapt from a tad over 50% to about 80%.
The fact that higher rates could be tough on an economy – and a Government – that is very heavily indebted didn’t seem to feature in the market response, with equities jumping around 11⁄2% to fresh record highs. The Dow Jones Industrial Average is up 6% in a month and 18% since early November (25% y/y).
What could possibly go wrong?"
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
