News and Market Analysis

US Federal Reserve Minutes. What’s to come?

The Fed took a defiant step forward in the war against the coronavirus. At least financially, after intervening in March with the bank’s rate and loan program.However many are concerned that the Fed is not looking to far into the future when making its decisions.

Although NFP came in better than expected, we still must consider the numbers. 22 million American’s lost there Jobs in March and April of which only 9 million have since re-entered the job market. Things did not improve in the second quarter however a recovery is predicted for this quarter with July and August producing positive returns already.

inflation figures are also nothing to go by as the virus has kept much the US locked up inside doing TIkTok videos. Let’s not even get started on TikTok. Still hearing about my last article when I mentioned it. No I will not be doing a dance and talking about the markets! Back to inflation. with everyone stuck at home there was no money being injected into the economy. So the recovery we have seen is nothing more than a “let me out I’m free!” moment and we see consumers start spending the extra the have in the kitty.

Will be a hard one to judge this time around but the minutes are ticking and all eyes will be on lower interest rates and even possibly the longer term outlook for interest rates overall.

Happy trading campers.