Lot of issues with the timing of the next Fed rate hike - ADM

We discuss the two key risk events in the market – BoJ and the Fed rate decision, with Marc Ostwald, Strategist for ADM Investor Services.

Ostwald delved deep into the widely discussed issues like timing of the next rate hike in the US and if more stimulus from Bank of Japan (BOJ) could work.

Ostwald aptly pointed out that the Fed may have a tough time in moving rates on June 21st as the EU referendum is scheduled on June 23rd. He further added that the markets do not see Fed moving rates closer to election. Ostwald also brought to viewer’s notice a hawkish tilt in views held by Fed doves – Rosengren and Evans.

While talking about BOJ, Ostwald noted the central banks owns a significant portion of Japanese government bonds and Exchange Traded Funds (ETFs) and wondered stressed there is no point in more monetary easing, given the anaemic economy despite massive easing.

central banks, BoJ, Fed, macro, fundamental, EU, referendum, US, Japan, economy