TradingFloor.com Releases Video On The Federal Open Market Committee Meeting
Released on: September 21, 2011, 5:12 pm
Author: Saxo Bank
TradingFloor.com, the home of Saxo Bank's trading commentary,
financial research and analysis, has released a video discussing the
Federal Open Market Committee meeting (FOCM).
With the deterioration in the US economic outlook being further cemented by recent
disappointing macro data, there is now mounting expectation that the Federal Reserve
will once again come to the rescue and kick-start the world's largest economy.
Therefore, all eyes are set to be on the latest Federal Open Market Committee
meeting and what will or won't be decided in terms on new monetary stimulus.
The latest FOCM meeting has been extended to a two day meeting to allow for further
discussions. The last meeting saw an extension of low rates until 2013, and Steen
Jakobsen, chief economist at Saxo Bank, believes that the next step will be an Operation Twist Light.
Back in the 60s, The Operation Twist, meant that people sold short term bonds and
bought long term bonds, which was seen as a twist, hence the name. This time this
will not be possible, because the rates have already been lowered. This means only
the long end part of the equation will be executed, with long term bonds being
bought. However, Steen doesn't think this will be a lot for the market in the long
This alone is not going to be enough to turn it around. Steen believes that the
market always likes to be promised something new, which means President Obama will
need to balance the delivery of the Operation Twist Light and throw in something new
Steen also comments that the situation in Europe will have an effect on the timing
of any announcements from the US. While it is clear that the US realise the
situation in Europe is not good for the US, Steen believes that the Federal Reserve
will ultimately do what is the best for the US.
TradingFloor.com is the web portal home of Saxo Bank's trading commentary,
financial research and analysis.
TradingFloor.com's diverse contributors who range from macroeconomists to trading
advisors, all strive to deliver insightful, enlightened commentary on trading in the
financial markets - particularly on forex and forex trading,
equities, stocks and commodities. Tradingfloor.com also publishes periodical
model-based research and analysis to help longer-term traders allocate funds between
and within asset classes.
TradingFloor.com's commentary and analysis is delivered in text and video via the
website, where users can watch forex videos and receive
information on products such as CFDs.
The website is also embedded in all Saxo Bank's trading platforms. Users can also
subscribe to content from TradingFloor.com, or from their favorite contributor, via
RSS feed or via Twitter.
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