Investor eyes are firmly on the publication of the FED minutes later with all bets off on whether a rate rise across the pond is on the cards.
In a broad ranging interview segment, which considers US data and other corporate offerings, Mike Ingram, a strategist at brokerage BGC Partners, tells Tips TV that the tone of the FOMC may well be hawkish, but notes that we have been here before.
The Fed has cried wolf on rates many time before and nothing has come of it, he suggests.
“The voting members (of the Federal Open Market Committee) are much more dovish than the broader FOMC so it’s very likely that the tone might be quite hawkish and we’ve seen very recently Janet Yellen giving testimony to Congress,” he says.
“Last week we saw the market probability of a March rate hike move from 30% to 44% then it came strongly back down again.
“So even if we have a rate scare the market just seems to forget about it after 48 hours,” he suggests.
He also added that with two more board governors likely to be joining the committee shortly, and a third after April, that picture may change.
The meeting minutes are set to reinforce or undermine recent hawkish comments from the Fed.
Cleveland Fed President Loretta Mester this week said she was “comfortable” raising rates at this point if the economy maintained its current performance.
Story by ProactiveInvestors