20.03.2014 - Dollar strengthened after the Fed meeting
The new head of the Fed, Janet Yellen, during her press conference yesterday, announced a decrease in purchases of Treasury bonds to $ 30 billion, mortgage-backed securities to $ 25 billion. Unemployment rate according to the Fed's forecast is expected to fall to 6.1% - 6.3% in late 2014, while inflation will reach the target figure of 2.0% in 2015. Most members of the Federal Open Market Committee of the U.S. Federal Reserve expect rate increase in 2015.
These results show optimism about the future growth of the largest economy in the world, but it is worth noting that the reduction of quantitative easing together with overbought stock markets should lead to a significant correction of the stock indexes.
We maintain a long-term negative outlook for the U.S. stock indexes.
Wish you the profits!
FXFINPRO Capital Analytical department.