Steady Fed encourages capital outflow - AmpGFX

Greg Gibbs, Director at Amplifying Global FX Capital, explains that a sense of stable Fed policy may further encourage capital flows to other countries exhibiting stronger growth trends.

Key Quotes

“The US Fed retained a cautious and gradual rhetoric, even though hiking in March, maintaining a three-hike forecast for this year. It appears to need ongoing evidence of improvement in the economic outlook (tighter labor market and higher inflation) to force the case for a second and third hike this year.”

“If USA economic reports appear to show a plateauing and US equities stall, the Fed may revert to a wait and see stance through the middle of the year.”