This week anticipation is especially high on the markets, as the Federal Reserve will be convening for a policy meeting. Traditionally this type of meetings are used to decide whether to adjust the interest rates in the United States. Over the past months fundamental data has been lukewarm at best, prompting investors to expect a dovish shift in the Federal Reserve’s approach. Moreover, President Donald Trump has been calling for one since the beginning of his Presidency, but his demands are finally becoming legitimate, in light of the most recent reports.
Nevertheless, the markets are uncertain about a rate hike this early. Analysts are hoping that the Federal Reserve will share more about what they’re thinking without hiking the rates this week. Based on the polls, an interest rate increase is not expected until September.
At this point it seems that the most investors could hope for is an indication from the members of the Federal Reserve that they will be more open to a rate decrease. This will have a weakening effect on the American dollar.
