The minutes of the May FOMC meeting got released yesterday, and the Greenback tossed and turned, but ultimately tanked as a result. What’s up with that?
Well, here are the key highlights from the latest FOMC meeting minutes that you need to know about.
Other than stating that it has a hiking bias, the Fed didn’t really provide any detailed forward guidance during the May 2 FOMC statement.
However, the minutes of the meeting heavily implied that the Fed will likely hike in June.As for specifics, the minutes noted that (emphasis mine)
“Most participants judged that if incoming information broadly confirmed their current economic outlook, it would likely soon be appropriate for the Committee to take another step in removing policy accommodation.”
It should be pointed out, though, that a rate hike is conditional on economic conditions evolving within the Fed’s forecasts (or better).
The PCE price index is the Fed’s preferred measure for inflation.
With that said, the Fed happily noted in the minutes that “12-month changes in overall and core PCE prices moved up in March, to 2 percent and 1.9 percent, respectively.”
And from the perspective of “most participants,” the firming of the PCE price index provides “some reassurance that inflation was on a trajectory to achieve the Committee’s symmetric 2 percent objective on a sustained basis.”
In short, some Fed officials expects an inflation overshoot because of the robust U.S. economy and higher oil prices.
Despite the recent rise in the PCE price index and expectations that inflation may even temporarily overshoot the Fed’s 2% target, the minutes revealed that Fed officials agreed that “it was premature to conclude that inflation would remain at levels around 2 percent, especially after several years in which inflation had persistently run below the Committee’s 2 percent objective.”
And Fed officials were not too convinced that the recent rise in inflation is sustainable because “Market-based measures of inflation compensation remained low, and survey-based measures of longer-term inflation expectations were little changed, on balance.”
Since “some” Fed officials think that inflation may overshoot the Fed’s 2% target and since Fed officials generally agreed that inflation expectations were still low, the minutes revealed that the Fed may allow inflation to temporarily overshoot its target when it noted that:
This is a rather dovish message since it basically states that the Fed will not react to stronger-than-expected inflation by hiking aggressively. In fact, the Fed welcomes stronger-than-expected inflation.
In summary, the minutes revealed that the Fed thinks that another rate hike is likely “soon” which is a hawkish message.
However, the minutes also revealed that the Fed is not confident that the recent rise in inflation is sustainable because inflation expectations remain low.
And since inflation expectations are low, the Fed thinks that it would be A-Okay to let inflation temporarily overshoot the Fed’s 2% target, which implies that the Fed will not hike aggressively in response to stronger-than-expected inflation, which is a rather dovish message and likely dismayed some traders.
I hope most of the investors have read and heard about Managed accounts in Forex. Among this, Pamm is one of the most powerful and secured way of investing. I am uploading a video which shall give a visual explanation as to how this process works.
Primarily let me clear the floating rumour around the financial markets that HYIP(High Yield Investment Programme) is a total scam protocol !! Whereas the reality is its not actually the way its shown. HYIP ( High Yield Investment Programme ) does basically exist for over several years and will continue in the future also. But whats exactly existing in real HYIP is the simple working protocol, that is an investors or a group of investors combine together and collaborate with a Good Fund Manager, Yes I repeat a good fund manager!! Definition of a Good Fund Manager is as simple, who is well experienced, knows how the financial markets react in different situations, and know how to place RISK TO REWARD RATIO in a particular financial market! That can be any financial instrument such as FOREX, BONDS, MTN, TREASURY BONDS, STOCKS, and MUTUAL FUNDS etc. A Good Fund Manager will have his past track record duly audited from a good Financial Auditor, such as KPMG, PWC, etc….
What basically the fund manager does is draws down a financial target to meet up a profit goal, derived from trading any of the above listed financial instruments, over a period of time. The quantity of trading in terms of volumes of trading is bit high, due to which two points are most common to happen, one is the profit ratio will be very high and other point is if the trade is not performing as per the correct direction, the risk will be also high, but that’s where a good fund manager comes to play. Fund Managers due to his long lasting financial history and market experience knows which tide will take him upwards and which tide may sink him down, so accordingly he manages the funds and allocates the volumes per trade!! This is the correct picture of a existing successful model of a performing HYIP.
Now lets come down to non performing or Pseudo HYIP AKA SCAMS ones.
Most of the times to lure investors and pool up large funds, few similar minded people with negative mentality goof up around with bunch of marketing professionals, who are masters in convincing people around !! This is the initialization of the HYIP step one. Lemme repeat what is HYIP, High Yield Investment Programme. But here the real scenarios are a lot different, these people do really trade good for some time to win the confidence, of the investors to pool up more funds from the investors end and once the investor pours all in as per the pooling campaign goal, only two things have happened in the past ! Either the so called fund managers working with the marketing professionals, disappear with total funds, by just a single black out window and will shut down their website overnight ! Or the so called fund managers will post the most common message, “INVESTMENTS ARE SUBJECTED TO MARKET RISK “ , and will show out a good reason which will cover that their trade which they had opened went in the wrong direction due to some of the reasons which shall be one of the following ( Central Bank Policy Change, Central Bank Intervention, Market Crash due to Economic News, etc ). And the investor believes that what can the trader do, its the Central Bank policy which altered the trade !!! This is one of the most common successful gimmick played over by Fake HYIP runners in the markets !!!
I hope this article provides good insights of staying away from Fake HYIPs !!!
When we see most of the sites listed on websites like www.hyip.com and www.hyipmonitor.com we can see that there are multiple sites which are promising to pay somewhere from .014 % daily up-to 10 % per day. Dear Readers, I have no personal or professional interest in defaming or writing against the running business on the sites listed on above 2 sites, but to my personal interest, I see that these sites are promising a very hyped profit, ratios. Just imagine and see, do these websites have better analysts and economists than Banks and Hedge fund owners. We know that banks and fund managers are highly educated institutions which deal with public funds and hence are operating with great responsibility in managing funds. Even if we see any developing nations bank rate of interest or a developed nation’s bank rate of interest I don’t see it crossing 11 % per annum. Even in case of Hedge fund, I have noticed that after 1 year the max profit deliver was 40 % who was associated with Assets Management with Billions of Dollars. But when we come to the offerings on the sites of HYIP.com, we see that sites are offering profits up-to 420 % per annum . This is really hypothetical. In my opinion I would recommend to really stay away from investments in websites, as you can see the list of websites who offered funds management dissapeared after collection of huge funds..