Fed Says Less is More
So the Fed, seeing that growth is a bit elusive, thinks two hikes this year instead of four is the appropriate number. On cue the dollar headed down and stocks and bonds headed up today.
This decision takes a lot of pressure off leading equity markets and helps large U.S. exporting companies by raising the relative value of their customers’ currencies. Adding to last week’s announcement from the ECB that extraordinary measures will be taken to stimulate Euro banks to lend creates a much friendlier sales environment for our exporters, especially big tech.
Now we get to watch economic numbers from the U.S., Europe and China to see if this “re-loosening” gains some economic traction. However, markets will vote before the event so we need to keep our buy lists at the ready.