Sunday, October 29, 2017

Janet Yellen got into an awkward position because of allegations Draghi

Janet Yellen got into an awkward position because of allegations Draghi

On this week the head of the
ECB Mario
Draghi sparked signal to markets that
new incentives from the regulator can expect
in December of this year. However, the fact
how to feel the Federal
Reserve not thought - and yet
This statement puts Yellen in an extremely
an awkward position.


After the speech Mario Dragi
and his press conference following the meeting on the global stock markets
It began a sharp rise, which is also
It had a major impact on the dynamics of
currency. The euro has fallen off to the dollar by about
2%, and due to this increased sharply index
dollar - to the level of 96.3 points. On Friday
day index rose to the level of 69.94
points.


There are different opinions on
this, but a lot of analysts
confidently say that the Fed still
to raise rates before the end of the year to
maintain its reputation, which is already
already hanging by a thread. Quite possibly,
that rates will rise at least a symbolic
0.1%, and perhaps all of 0.25% because
Recently treated control
only empty promises. And taking into account the
of how the market reacted to the statements
ECB now raise the Federal Reserve
It will be much harder.


Another problem is that
ECB, weakening its currency, led to an increase
US dollar just before the
levels that have prevented the Fed to raise
rate in September, according to the publication
EconMatters. That's when the market was really
ready to raise rates, but the US
the central bank did not do this and the market
A wave of disappointment.
Of course, the Fed members immediately tried
convince traders that inaction -
only a temporary need, and to
end of the year promises they still perform.
But now we understand that to do
it will be extremely difficult. And if all of a sudden
Fed again will not change rates,
he risks all to become the subject of ridicule.


Remember that Janet
Yellen never in their statements not
She said that she was worried about the weakness
Euro. She always tried to convince everyone that
regulator concerned about a strong dollar
First of all the currencies of developing
countries. However, at present growth
US dollar against these currencies is not observed,
quite the contrary - the real, the lira, rupee and
Asian currencies show
strengthening. And it turns out that
December meeting of the dollar factor
It will not prevent the Fed to raise rates, and,
most likely, the regulator will use the
the dollar index as an excuse and
an occasion once again to abandon
increase.


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