EM markets hope to cheer forward as Fed minutes reveal flexibility on interest rates

Sourced from: https://www.countingpips.com/2019/04/em-markets-hope-to-cheer-forward-as-fed-minutes-reveal-flexibility-on-interest-rates/

Article by ForexTime
The narrative coming from the latest US Federal Reserve meeting minutes indicates that policymakers are hanging on the fence in relation to fiscal policy. Fed members voiced the demand for flexibility that will be digested as a near-term damaging for the Greenback.

Investors do before they can get excited in a trade deal that is complete about pricing, overall want to listen to President Trump declaring a “ registering summit ” using China. The mix of Mnuchin’s most recent remarks plus a Fed should help increase risk appetite following the IMF downgrade on earth expansion that is global.
I would say the larger consensus that is likely going to build after this data release from the Fed is we ought to expect US interest rates to remain on hold for a protracted period. This is the reason the Greenback has slipped in Wednesday trade.

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Among the more noteworthy stories that will make the rounds as we head in the closing phases of trading for the week is going to probably be resumed confidence over US-China commerce optimism after Treasury Secretary Steven Mnuchin reportedly made comments that the currency component of the US-China trade bargain is “complete”. This should help rebuild some danger appetite back into the investor surroundings, meaning we could see encouragement for stocks, emerging markets and emerging market currencies as a result of Mnuchin’s remarks.


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Taking a look at the tone of this messaging used in the FOMC Minutes launch, it doesn’t seem like US interest rates will likely be increased again in a rush. But, policymakers implied that they would remain somewhat data dependent, so the conversation might be reopened at the next half 2019 if US information picks up over the forthcoming months.