Fed rate decision

[FiringSquad13]

OK folks, what are your thoughts for this weeks Fed rate decision?

 

Taking into account NFP figures, inflation and recent Asian data, I am going for a rise. 

[LukeM]

Hi ,

 

I thought I'd let everyone know that the IG TV team is going to be broadcasting live from 6.55pm this evening to follow the FED announcment and track how the markets react.  will be joining Sara in providing insight from our TV studio as the data is released; then one of our Premium Client Managers will be interviewed directly from the dealing floor to explain where our clients are placing their money and where the deals are flowing. 

 

You'll be able to watch it on the following site: http://www.ig.com/uk/live-video 

 

If you have any questions throughout the evening, let me know on here. I'll try and post the announcment as soon as it happens at 7pm. 

[LukeM]

FED raises rates by 0.25% to 0.5% see the full statement here: http://www.federalreserve.gov/monetarypolicy/files/monetary20151216a1.pdf 

[FiringSquad13]

Up she goes. Press conference will be interesting. Focus is now on how frequently they will raise.

[Guest ChrisB]

 

When Janet Yellen promises, she delivers. That is the message many will take away from the Fed decision tonight. While the press conference is still to come, hopefully bringing with it more clarity on the path for 2016, the absence of dissent and the retention of ‘gradual’ in the statement will mean that, for the next two weeks at least, stock markets can look forward to further gains. Compared to the volatility that might have transpired had they ducked the decision, the reaction has been muted, but then that is probably the outcome Janet was looking for.

The problem now is that the easy part is done with. Now attention turns to the path of further rate increases in 2016 and beyond. Given her careful positioning over the course of the past year, it is highly likely that Yellen will seek to keep all her options open. We became used to the phrase ‘data dependant’ in recent months, but it is a refrain that will serve the Fed well in coming months. Perhaps, for now at least, we can all just look forward to Christmas.

 

 

Chris

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[Guest Zero]

Why didn't they do that in September?  I see that the probability is higher now for a rate cut in Jan than a further rise.  So "someone" thinks that the rate rise was a policy mistake or the language not dovish enough.  Not sure if that will become a consensus.   

 

I'm impressed with IG TV Team doing a live chat too -  ,  .  While I didn't catch it live, I think it deserves a thumbs-up !