Assured Trading: The US Federal Reserve is broadly expected to leave interest rates unchanged when it meets over two days later this week. Concerned about the global economic headwinds, the central bank will try to reconcile some encouraging data with the slowing growth in China and Europe as well as the as-yet-uncertain consequences of Britain’s decision to leave the European Union.
Investors will be paying close attention for clues on when policymakers envisage being able to raise US interest rates now that concerns over slowing growth in the first quarter have largely receded. Currently, many investors believe the Fed will raise rates at either its September or December meetings but Assured Trading is less convinced.
“The Fed is still persisting with this narrative whereby it tightens monetary policy when central banks in Japan, Europe and the United Kingdom are preparing to ease further,” said Boyd Capote, a senior strategist at the Japan-based broker dealer.
“We believe that the Fed will be more inclined to tolerate inflation at higher levels than its oft-stated target of 2% if it means giving the economy room to grow.”
Assured Trading says it expects the Fed’s policy statement to try to sound a dovish tone while leaving the door open to rate increases later on in the year.
“We don’t think it will be enough to reign in expectations of higher rates and we expect the dollar to firm over the next few weeks raising pressure on the Fed to consider delaying hikes until 2017,” concluded Capote.

About Assured Trading:
Assured Trading's reputation has been built on a robust history of providing investors with a high caliber of expertise and professional support they need to make comprehensive and farsighted decisions relating to their financial wellbeing now and in the future.

We specialize in assisting clients who, having spent much of their time accumulating wealth, now want their money to work for them in the most advantageous way possible.