All eyes turn to Fed’s next steps and China’s response
Markets have welcomed confirmation of the widely expected first interest rate rise since the financial crisis, but all eyes have quickly turned to focus on what comes next.
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Markets have welcomed confirmation of the widely expected first interest rate rise since the financial crisis, but all eyes have quickly turned to focus on what comes next.
About the right amount of ‘dovishness’ seems to be the initial verdict from market commentators pronouncing on what had been billed as the biggest event in financial markets since the collapse of Lehman Brothers.
The last time the Federal Reserve raised interest rates, Daniel Craig had just taken on the mantle of James Bond and Sylvester Stallone had just successfully resurrected the Rocky franchise from the ignominy of 1990’s Rocky V.
Markets responded positively to the release of the Federal Open Market Committee minutes, which showed a December rate rise is increasingly likely.
The US Federal Reserve’s decision to hold interest rates in the 0-0.25% target range was met with muted response by investors, not surprised by the dovish tone.
S&P’s surprise downgrade of Brazil’s credit rating on Wednesday has added another layer of complexity to the decision facing the members of the Federal Open Market Committee next week.
The ending of an era of unprecedented quantitative easing was announced on October 28th by the US Federal Reserve. The end of the third quarter of 2014 showcased two significant events across global financial markets.
Credit Suisse has pleaded guilty to conspiracy to assist US customers in presenting false income tax returns and has paid a settlement to the US Government of $2.8bn.