19.04.2014 - Fed’s statement supported the markets

Yesterday, the Fed has made a number of statements after the meeting of the Federal Open Market Committee. Thus, interest rates have remained at the level of less than 0.25%, while the volume of purchases of assets was reduced by $ 10 billion, as expected. At the same time it was noted that rates are likely to be increased to 1% in 2015 and to 2.25% in 2016.

Particular attention was paid at this meeting to inflation, which last month increased by 0.4% vs. the forecast of 0.2%. In the Fed stated that are aware of inflation risks of and expect that it will be 2.0% as projected. A positive was the message about the fact that the economy continues to recover from a slowdown in Q1, which was due to bad weather conditions.

We expect that the growth of the U.S. equity markets may continue up to 2000 on S&P500, but the market needs a correction.

Meeting of Executives

Wish you the profits!

FXFINPRO Capital Analytical department.

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