Thursday, April 28, 2016

The Federal Reserve Announcement
Yra Harris thinks that some analysts & algo readers initially thought the statement was "hawkish" because the Federal Reserve removed most of the rhetoric about the headwinds of international global & financial developments - "I say most because the Fed left in 'net exports have been soft.' This is either a concern about the lack of global growth and/or an overly strong U.S. dollar. It is MY OPINION that the Fed removed the language about international financial risks as an offering to the HAWKS as a way to get consensus. The bond futures initially sold off but rallied hard by the close, even as the equity markets found strength, especially after Facebook earnings were better then expected. The DOLLAR remained weak so the market sense is the Fed will be on hold for longer than the 'baby hawks' suggest. If the Fed is data dependent, it is time for all the FOMC voters to silence themselves for as each speech renders itself meaningless since the votes are always the same. Consensus abhors independent thought."
LINK HERE to the commentary

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