3 March 2021
1300 794 893
Subscribe

2019: All about The Fed & Beijing

Charlie Aitken
25 March 2019

In equities, commodities, bonds and currencies, 2019 has all been about The Fed and Beijing reversing policy. Both have done 180° turns on their 2018 policies.

At the conclusion of the March FOMC meeting last night, Jerome Powell provided two more dovish surprises (to go with the now infamous Powell Pivot delivered at the January FOMC statement). Firstly, the median dots now indicate zero rate hikes in 2019 (down from two previously). Secondly, the pace of the balance sheet reduction (colloquially referred to as QT) will slow in May and end completely in September. Specifically, the cap on Treasury run-off will shrink from $30 billion a month to $15 billion a month in May and Fed balance sheet reduction will be halted at the end of September. These changes make it quite likely that the Fed is done with tightening for this cycle. In simple terms, the next move in US cash rates is likely down and QT is ending.

To read the full article, take a free trial to the Switzer Report.

Click here to subscribe to the Switzer TV channel on YouTube and keep up to date with all of our shows.

Subscribe to our Switzer Daily newsletter and get our latest articles, videos and podcasts straight to your inbox!

Comments
Get the latest financial, business, and political expert commentary delivered to your inbox.

When you sign up, we will never give away or sell or barter or trade your email address.

And you can unsubscribe at any time!
Subscribe
1300 794 893
© 2006-2021 Switzer. All Rights Reserved. Australian Financial Services Licence Number 286531. 
homeshopping-cartphoneenvelopedollargraduation-cap linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram