The biggest crisis within the financial sector was recorded nearly a decade ago, while the Federal Reserve lead the turning point and decided to begin unwinding the stimulus in order to avoid another depression. Moreover, the US Fed will begin the $4.5 trillion worth of balance sheet reduction in October and initially will start by $10bn each month. According to Fed chair Janet Yellen, the normalization process is expected to be gradual and seems foreseeable. While US policymakers kept the dollar rates unchanged at 1.25% to 1.5%. The FOMC is projected to increase borrowing costs for the second time in 2017, followed by the anticipated three-time hike in 2018. During the press conference, J. Yellen confirmed that the central bank has no clue regarding the failure of inflation to return to its target. In addition to, she already anticipated for the short-term damages caused by Hurricanes Irma, Harvey and Maria to the American economy. Yellen still doesn't have any plans for the future as she hasn’t met US President Donald Trump and did not even discussed whether she would pursue to have a second term after her first stint which will end on February 2018. It appears that investors see the Fed’s decisions as positive, considering the shares moved slightly higher in New York. The American dollar rose amid the weakening of the US government debt. Investors are prepared with the impact of the Fed’s policies against the markets.
PAUTAN SEGERA