The market is nearly unanimous in expecting a 0.25% rate hike during tomorrow’s FOMC meeting, yet many expect a “pause” shortly thereafter. We beg to differ.
"the path of monetary policy is the single biggest determining factor for the strength or weakness of the U.S. dollar against all other financial assets and currencies." so true!
Looking forward to seeing how rate expectations change based on J Powell's press conference yesterday.
How much longer can the Treasury continue to provide QE, countering the Feds QT? So far, net liquidity has gone slightly up since Oct. buoying markets significantly.