The US Central Bank, the Fed remains on to increases in interest rates — Commerzbank

FXStreet — The deepening political crisis in the course of the Investigation, the Russia-Links to the election campaign teams of Donald Trump, the volatility in the markets rise, said Bernd pastures Steiner, Commerzbank market analyst.

Important Quotes:

Some market participants appears to be the next interest rate move by the Fed in June, therefore, again doubtful. As long as there is no massive slump in the financial markets, and as long as economic data meet the expectations of the Fed, will the Fed raise interest rates but.

Recently William Dudley (President of the Fed of New York), stressed that the US economy of full employment «was pretty close». The Inflation was only slightly below the 2% target. Therefore, the Fed may reduce its monetary stimulus gradually. The economic expectations, the Fed should arrive, will start the US-based Bank later this year or in the next in order to normalize its balance sheet gradually.

Numerous Fed officials have assured in the last time, that the reduction of the balance sheet total will be slow and would be well communicated. The communication of the Fed serves as a visible, remaining in connection with the removal of the enormous value of the paper of the Central Bank to reduce inventories. A large Change in the monetary policy was not connected to it, Dudley. He does not reckon therefore with no major dislocations.

** FXStreet News Editorial, FXStreet**

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