Should we trust Fed’s forward guidance? - GKFX

Fed’s 'dot chart' released yesterday showed scope for three rate hikes in 2017 as opposed to the previous forecast of two rate hikes. This is widely being called as a hawkish turn… the one that could rattle equities and strengthen the US dollar.

However, GKFX Chief Market Analyst advises Tip TV viewers “to take the forward guidance with a pinch of salt”. He rightly points to the fact that Fed promised four rate hikes in 2016 last December, but delivered just one!

Listen to the full segment to know the event risks in 2017 that could lead to financial market instability and forced Fed to back off from its hawkish forward guidance.

#Fed, #central banks, #interest rates, #macro, #markets, #trading, #investing