SMPForex: the weak US economic data, the Fed's hawkish rhetoric to conceal

Updated: October 20, 2015  Views: 45

Despite the recent release of US economic data generally poor performance, but still came inside the Fed hawkish rhetoric, Three People Dudley said the Fed, as long as the US economy on track, in line with his previous forecast, it still supports the Fed to raise interest rates during the year If the US economic performance in line with his expectations, is still on track, he will support the Federal Reserve to raise interest rates in 2015.

For the market that the hike of resistance factors 'inflation', Dudley said the Fed confident on inflation, is not entirely dependent on actual inflation data, Dudley acknowledged recent data show that US economic growth is slowing, but said this did not want to jump to conclusions He added that the US domestic economic performance as a whole is still very good, slightly above trend levels, even in the face of the unfavorable situation on trade and inventory the future will continue to pay close attention to economic development.

Fed interest rate policy must be clear is how to plan, monetary policy should not be limited by mathematical formulas. Federal Reserve monetary policy should react according to the situation changes, businesses and households of the Fed's actions should have certain expectations, if the US economic performance and His consensus expectations, is still on track, he will support the Federal Reserve to raise interest rates in 2015. with Fed Vice Chairman Stanley Fischer position consistent, Dudley said that this is only expected to promise not expected to be right sometimes, sometimes wrong.

Once when immature hike, you might have lowered the interest rate risk risking 0 The lower negative interest rate environment, does not outweigh the disadvantages. If you wait too long to raise interest rates, you may then need to be more radical action ,, The Fed has made it clear what factors affect their policy decisions. September the Fed decided not to raise interest rates, economic growth and China because of uncertainties.

From a technical point of view, the dollar index yesterday after opening the Asia-Pacific plate shock rebound, driven by favorable factors in intraday extended gains from the daily, short-term moving average slightly turn head, above the average long-term pressure, MACD dead near the zero axis Fork Run, Brin rail flat, narrow track up and down, from the upstream direction, above the resistance 95.30,95.80 from the downstream direction, below the support 94.50,94.00.


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