Fed rates rising could soon be off the table, while the dollar is looking like it has less shine as of late, and the Fed is not ruling out Quantitative easing.
Guildhall looks at three key pieces of news that came out this week.
1) Goldman Sachs is no longer confident that the dollar is going to maintain strength and removing it from its top trades.
2) Boston Fed president Rosengren in a recent speech stated that the Fed “may necessitate more frequent use of large-scale asset purchases during recessions”… and it is “quite likely that the use of central bank balance sheets will be necessary in future economic downturns.” This indicates that Quantitative Easing is back on the table for the next recession which will be negative for the dollar.
3) The IMF finds over 20% of US corporations at risk of default should rates rise.