US Investors are Gazing at Today’s Fed Minutes
Today is the day when US investors and especially the institutional ones listen carefully to what Janet Yellen will declare in the press meeting expected at 2pm.
But it is more important than what usually is, because it is since 2008 that the FED had not risen its interest rates and this is also the week when the US unemployment rates will be disclosed. Now that the American economy has resurged, it is time to think about adjusting the interest rates according to the current economic situation, otherwise in the long term this could result to create another financial bubble and would lead to a new economic decline. On purpose, probably, the rate will be still very low, in order not to shock the markets in such a strong way.
The responsibility is relevant, as in the US the FED has the double goal to keep prices stable and control the unemployment rate; quite differently in Europe Mr. Draghi has the primary goal to keep prices stable, thus controlling the inflation rate.
As usually, today the US market will be quite volatile and difficult to forecast, but besides the FED release about interest rates, the average consumer price (inflation rate) is also due to be released in the next few days, so investors should be aware of the fact that the financial markets are entering a different phase for the time to incorporate those new economic developments.