FXStreet (Delhi) – Asoka Wöhrmann, CIO at Deutsche AWM, suggests that by delaying the rate hike, the Fed has complied with market’s demands of postponing action.
Key Quotes
“We can see that words have once more been the Fed’s only policy tool, as markets still await action. The Fed’s leeway to act pro-actively is trimmed as the window for a rate hike further narrowed.”
“Markets now have got what they asked for, we therefore expect little reaction with a slight positive bias for risk assets. The statement with its emphasis on 'global economic and financial developments' was less hawkish than the press conference, where Janet Yellen emphasized, that nothing material has changed and that a rate-hike in October is still possible. Therefore we now have to wait for the next FOMC meeting.”
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