{"id":152611,"date":"2019-08-01T11:03:35","date_gmt":"2019-08-01T15:03:35","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=152611"},"modified":"2019-08-01T09:05:10","modified_gmt":"2019-08-01T13:05:10","slug":"markets-are-rocked-by-the-fed-but-the-chair-made-the-right-call","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/08\/markets-are-rocked-by-the-fed-but-the-chair-made-the-right-call\/","title":{"rendered":"Markets are rocked by the Fed – but the Chair made the right call"},"content":{"rendered":"
August 1, 2019<\/div>
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By George Prior<\/strong><\/p>\n

President Trump is angry and financial markets are disappointed with the Federal Reserve\u2019s statement on interest rates yesterday\u00a0– but the Fed Chairman made the right call, affirms the boss of one of the world\u2019s largest independent financial advisory organizations.<\/p>\n

The comments from Nigel Green, founder and CEO of deVere Group, comes as markets have been rocked at Chairman Jay Powell\u2019s suggestion that the U.S. central bank\u2019s first rate cut in a decade does not necessarily mean it will be followed up with an aggressive rate-cutting program.<\/p>\n

Donald Trump lashed out at the Fed\u2019s decision via Twitter.<\/p>\n

Mr Green notes: \u201cThe markets have been left reeling by the hawkish approach taken by Powell as they had largely priced-in two more rate cuts this year based on previous signals by the Fed.<\/p>\n

\u201cPowell appeared to brush off concerns of a serious downturn within the next 18 months that the inverted yield curve is suggesting. But it\u2019s a tough call for Powell, when recent economic data has been fairly decent.<\/p>

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\u201cDo they conduct their monetary policy based on economic data, or what the bond market bullies them into?<\/p>\n

\u201cIt seems to be an unpopular view, but I believe the Chair made the right call in the current climate.\u201d<\/p>\n

\u201cThe markets want central bankers to give a clear forward path for rates, not nuanced, complex messages. But they should not necessarily expect this to happen.\u201d<\/p>\n

He continues: \u201cAs they often do, the markets have given a knee-jerk reaction to something they were not expecting. But if you read between the lines, the Chair\u2019s statement is, in fact, fundamentally more dovish than the markets have so far recognised.<\/p>\n

\u201cI believe once this sinks in, it will be acknowledged accordingly by the markets.\u201d<\/p>\n

The deVere CEO concludes: \u201cThe Fed is dismissing angry calls by the President and has ignored market expectations, thus far. Whatever happens in this current climate, those investors with a multi-asset, long-horizon approach are best positioned to reap the benefits and sidestep the risks.\u201d<\/p>\n

About:<\/strong><\/em><\/p>\n

deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.<\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior President Trump is angry and financial markets are disappointed with the Federal Reserve\u2019s statement on interest rates yesterday\u00a0– but the Fed Chairman made the right call, affirms the boss of one of the world\u2019s largest independent financial advisory organizations. The comments from Nigel Green, founder and CEO of deVere Group, comes as […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-152611","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/152611","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=152611"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/152611\/revisions"}],"predecessor-version":[{"id":152612,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/152611\/revisions\/152612"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=152611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=152611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=152611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}