Today the US Federal Reserve’s rate-setters meet and, following initially surprising then more extensive trimming of the Fed Funds target last year, will probably keep things as they are at 1.75 per cent. Mind you, the bond market is as always marching to its own tune, currently anticipating an extension into longer maturity repos in what the Fed insists is not QE at the discount window. However, the Congressional Budget Office estimates that within the next decade US national debt will rise to 98 per cent of GDP, its highest since WWII. Tomorrow the Bank of England’s MPC meets and rates are also likely to remain on hold at 0.75 per cent.
To continue reading, register today
to enjoy limited access to the following:
- Daily trading news
- Funds coverage
- Features on big investment themes
- Comprehensive companies coverage
- Economic analysis