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17 Jun 2013
Flash: Fed worries allayed? – Investec
FXstreet.com (New York) - Following what was a volatile and news packed four days, Friday came as a bit of an anticlimactic end to the week.
With little out on the data front it meant we ended the week on a bit of a flat note. The International Monetary Fund (IMF) has encouraged the US to reconsider its huge budget cuts it introduced this year by describing them as ‘excessively rapid and ill-designed’ in its 2013 annual report and stated the program would have an effect on growth this year. The IMF forecasts US growth this year at 1.9% and sees the government deficit declining by over 2.5% but said growth could be as much as 1.75% higher without the tightening of fiscal policy.
Market nerves were eased a little when it showed support of the Fed’s quantitative easing program and said it should push ahead with the program until at least the end of this year. According to Lee McDarby, Corporate Treasury at Investec, “Recent expectations have been that the Fed could being scaling back the program as economic conditions appear more and more favorable.”
With little out on the data front it meant we ended the week on a bit of a flat note. The International Monetary Fund (IMF) has encouraged the US to reconsider its huge budget cuts it introduced this year by describing them as ‘excessively rapid and ill-designed’ in its 2013 annual report and stated the program would have an effect on growth this year. The IMF forecasts US growth this year at 1.9% and sees the government deficit declining by over 2.5% but said growth could be as much as 1.75% higher without the tightening of fiscal policy.
Market nerves were eased a little when it showed support of the Fed’s quantitative easing program and said it should push ahead with the program until at least the end of this year. According to Lee McDarby, Corporate Treasury at Investec, “Recent expectations have been that the Fed could being scaling back the program as economic conditions appear more and more favorable.”