NEWS / Foreign Exchange

Fed Meeting Preview

Fed Meeting Preview

US Government is still worried about inflation, but it's not probable that a rate hike is given on the 28th July Meeting. The last hike was seen on June '06 when they hiked to the actual 5.25%.

It's also very probable that the post meeting statement will keep its tightening bias, and speak about the recent indicators of US faster growth such as the ISM, the capital good orders or the low unemployment tax.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

• Board of Governors of the Federal Reserve System
• View the past interest rates data on our Economic Time series
• Special Webinar: Live Coverage of FOMC US Interest Rate Announcement with Jerry Furst

In-Depth Analysis

• FOMC June 28th Meeting by BBVA Bancomer
• Forex Commentaries and Forecasts - About the Fed interest rates politic in 2007 by World-Signals?®
• Global FX Daily: European Edition - FOMC eyed by Mellon Foreign Exchange
• Forex Weekly Review and Outlook - Focus Back to US Data and FOMC by ActionForex.com
• Daily Global Commentary - FOMC Meeting: A Summary of Recent Economic Developments by Northern Trust
• The Currency Futures Report - Ahead of FOMC Meeting by Alaron

Related News

• European government bonds higher, focus to be on FOMC (AFX News)
• Millions In US Without Bank Accounts - Federal Reserve (Dow Jones)

Analysts' comments

• George Worthington, chief Asia-Pacific economist at IFR:
  "The week??™s key focus will be the FOMC??™s two-day session, ending Thursday, with no policy change expected although the statement is likely to maintain an emphasis on the risks to inflation. Particularly in light of the recent rise in oil prices and continued strength in food prices." - The Financial Times
• Madlen Read, analyst at Sioux City Journal:
  "TheFed is widely expected to keep the benchmark rate steady at 5.25percent, as it has done since last summer, but the policy statement itreleases Thursday will be parsed for clues about future moves." -Associated Press
• Craig James, chief equities economist at CommSec:
  "At the last meeting, the FOMC said that the economy was likely to expand at a moderate pace but noted that the principal risk was that inflation may not ease as expected. These judgments are unlikely to radically change although the FOMC may be a little more upbeat about inflation in light of recent data." - CNBC
  
• Joseph LaVorgna, economist at Deutsche Bank:
  "Even though we have abandoned our expectations for rate cuts from the Fed in the near-to-medium term, contrary to the inflation-hawkish language from the FOMC, we believe the risks remain skewed toward more accommodative monetary policy." - Gulf Times
  
• Joseph Balestrino, analyst at Federated Investors:
  "Absent a crisis or sudden shift in data trends, we still expect the Fed to stay on hold into 2008. Investors assumed the FOMC would cut interest rates in late 2007 or early 2008. Those same investors now have begun to factor in the possibility of an actual rate hike." - Gulf Times