31.07.2014 - The quantitative softening program continues to fold
One of the highlights of this week was the Fed's statement after a two-day meeting. Traders expected hints on when the Fed will increase rates, but in a statement the Fed again reported that rates will remain within the 0-0.25% for a long time. Among other theses statements should highlight the fact that inflation approached the long-term target level of 2.0%, and the likelihood that it will remain below this level decreased. Also yesterday, was noted that the situation on the labor market is improving, household spending continues to grow, companies are increasing their investment programs, and the housing market remains very weak.
Quantitative easing program has continued to decline, and buying bonds again will be reduced by $ 10 billion, to $ 25 billion. American market continues to decline, and we keep medium-term negative outlook with the potential of fall by 10-15%.