Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Friday, 20 September 16:26 (GMT -05:00)



Business And Politics News

Fed Raises Key Interest Rate. How Will This Affect Russian Economy?


The federal Reserve has raised the key interest rate by 0,25%. According to international experts, this may well make foreign assets (including Russian ones) less attractive in terms of investing.

 

 

 

 
The decision was made as the result of the recent 2-day FOMC meeting. The interest rate was raised up to 1-1,25%. At the same time, it’s interesting to note that the actual decision matched expectations, both from the international expert community and financial markets.
 
The related statement says that the Fed has recorded moderate economic growth in the United States. The PCE index estimating inflation has been decreased from 1,9% all the way down to 1,6%. At the same time, the Fed doesn’t deny another interest rate hike in the near future. If so, this is going to be a third interest rate hike this year seen after a long period of ultra-low interest rates that used to be unchanged for years.
 
Further down the road, the Fed is going to be guided by the inflation rate, inflation expectations, and the labor market stats when making another interest rate decision. Various international events are also going to be taken into account in this case.
 
At the same time, the report says that the Fed is going to start reducing their reserves. After various stimulating programs, the reserves have now reached 4,5 trillion dollars. With that said, they are planning to cut down on reinvesting in agency-backed mortgage securities and T-bonds.
 
As we have already mentioned, the interest rate hike didn’t come as a surprise since many of those financial experts around the globe had actually anticipated a 0,25% increase. For example, 95 out of 100 experts interviewed by Bloomberg said they expected such an interest rate hike. On the date the FOMC decision was about to be made, the likelihood of another interest rate hike was equal to 93,5%, which is confirmed by the related CME futures data.
 

 

At the same time, Masterforex-V Academy experts say that the Fed’s focus on inflation and labor market stats reveal the regulator’s further plans. To be more specific, the higher the Fed interest rates go, the more attractive the dollar assets become, thereby reducing the same financial attractiveness of other peers. That’s why Russian financial experts expect international investors to lose a bit of interest in Russian and other non-dollar assets. However, the impact is not going to be considerable since the markets have already taken the recent interest rate hike into account as it was nearly obvious the them.

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

Fed Cuts Key Interest Rate For The First Time In 10 Years

The U.S. Federal Reserve is reported to have cut the key interest rate, which is something really outstanding since the Fed has done it for the first time since 2009.

Publication date: 11 August 03:05 AM

New Prime Minister Names Brexit Date

It seem that the new Prime Minister of the United Kingdom is really determined about everything related to the Brexit. The process is expected to start in later 2019. Boris Johnson's standpoint on the matter didn't come as a surprise to the international expert community, Market Leader reports. The thing is, he has been well-known for being an advocate ad big supporter of quitting the European Union in general, and doing so without a major agreement in particular, which is also known as the hard Brexit scenario. 

Publication date: 07 August 06:54 AM

Johnson Launches Hard Brexit Ad Campaign

Boris Johnson, who has recently been appointed new UK Prime Minister, is on his way to launch an ad campaign to promote the idea of quitting the EU the hard way, which is also known as the hard Brexit. For those of you who don't know, the hard Brexit scenario implies quitting the European Union without signing a major agreement.

Publication date: 31 July 11:43 AM

U.S-China Trade War Is Sponsored By Consumers

According to the IMF, consumers and producers are the biggest losers in the trade war between the United States and China. Despite growing duties, American companies are not in a hurry to move their production back to the USA.

Publication date: 12 July 01:19 AM

US-China Trade Conflict May Trigger Another Global Financial Crisis

Beijing and Washington are one step away from escalating their trade conflict. The confrontation may harm the entire global economy. Some experts belive that the trade war may also trigger another global financial crisis. At this point, the parties seem to have come to a standstill, which is why the chances of the conflict escalating into a move severe trade war are still growing.

Publication date: 18 June 10:18 AM

WTO Lowers Global Trade Growth Forecast

 WTO experts are reported to have revised their forecast for the pace of global trade growth. The renewed forecast names figures below the previous ones - 2,6% against 3,7%. It's also interesting to note that the previous forecast for 2018 failed to match the actual figures.

 
Publication date: 19 May 02:58 AM

How to Protect Investment Capital in 2019?

Existing political and economic risks are pushing international investors into thinking about the security of their investment capital. Chasing big profits becomes secondary to this kind of security.

Publication date: 31 March 11:26 AM

EU Comes Up With Workaround to US Sanctions

The representatives of Germany, France, and the UK have registered a company to let it trade with Iran despite the US sanctions. The company still needs to be approved by 28 EU members.

Publication date: 31 March 02:33 AM

Beijing and Washington are getting ready for the final talks

Publication date: 17 February 08:58 AM

US-China Trade War Reaches Next Level

Washington and Beijing have announced a new round of talks. International experts say that the trade war is indeed going to a whole new level.
Publication date: 08 January 10:17 AM