We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bullish
More View more
Real Time News
  • Thai Finance Ministry says #coronarvirus may cut about 400k visitors -BBG $USDTHB
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.46%, while traders in US 500 are at opposite extremes with 71.30%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/t7OBrrCW1J
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.12% 🇯🇵JPY: 0.00% 🇬🇧GBP: -0.05% 🇪🇺EUR: -0.08% 🇨🇭CHF: -0.10% 🇳🇿NZD: -0.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/haGVeVyQyA
  • The $USD rose as the Singapore Dollar, Malaysian Ringgit and Philippine Peso fell on coronavirus fears. What is the technical outlook for USD/IDR, USD/SGD, USD/MYR and USD/PHP? Get your market update from @ddubrovskyFX here: https://t.co/G3GmyOe4IT https://t.co/hXubgKzqfp
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.35% US 500: 0.35% Germany 30: 0.31% France 40: 0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/VHUHZF1Cyz
  • 🇯🇵 JPY Consumer Confidence Index (JAN), Actual: 39.1 Expected: 39.5 Previous: 39.1 https://www.dailyfx.com/economic-calendar#2020-01-29
  • Heads Up:🇯🇵 JPY Consumer Confidence Index (JAN) due at 05:00 GMT (15min), Actual: N/A Expected: 39.5 Previous: 39.1 https://www.dailyfx.com/economic-calendar#2020-01-29
  • The #Euro has broken four-month support guiding a recovery against the US Dollar to suggest that the long-term downtrend has been re-engaged. Get your EUR/USD market update from @IlyaSpivak here: https://t.co/FHiGQZ6zvV https://t.co/0ulmLWaZxK
  • The US Dollar may be on the verge of upside breakouts against #ASEAN currencies such as the Singapore Dollar and Malaysian Ringgit after Wuhan virus fears boosted $USDSGD and $USDMYR #SGD #USD - https://www.dailyfx.com/forex/technical/article/special_report/2020/01/29/Dollar-Technical-Outlook-May-Turn-Bullish-as-USDSGD-USDMYR-Rise.html?CHID=9&QPID=917702 https://t.co/1M1GTIo79r
  • $AUDJPY technical positioning hints prices may be on cusp of turning lower after a late-2019 bounce, recoupling with a dovish RBA policy outlook. Get your market update from @IlyaSpivak here: https://t.co/z84Y0V0ZtH https://t.co/e30wIlAkbF
Fed Monetary Policy Outlook in 2020: FOMC Voting Changes

Fed Monetary Policy Outlook in 2020: FOMC Voting Changes

2020-01-02 11:00:00
Justin McQueen, Analyst
Share:

Federal Reserve Analysis & News

  • 2019 FOMC RECAP
  • 2020 VOTING CHANGES
  • VIEW ON 2019 RATE CUTS AND 2020 OUTLOOK

2019 FOMC RECAP

At the beginning of 2019, the Federal Reserve had abruptly altered its outlook with regard to monetary policy, having stated that they would act in order to sustain the expansion from previously noting that QT was on autopilot. Consequently, as risks tilted to the downside for the US economy with trade war risks on the rise, Powell and Co. responded with a mid-cycle adjustment entailing three consecutive 25bps rate cuts from 2.25-2.50% to 1.50-1.75%. Alongside this, the Federal Reserve expanded their balance sheet via repo operations in order to boost the supply of bank reserves and place pressure on repo rates.

2020 VOTING CHANGES

The new year will see four regional Fed Presidents rotate into voting spots in January. In turn, this will see Mester (Hawk), Kashkari (Dove), Kaplan (Neutral) and Harker (Neutral) replace Bullard (dove), Evans (Neutral), Rosengren (Hawk, Dissenter) and George (Hawk, Dissenter), making for a slightly more dovish FOMC committee.

VIEW ON 2019 RATE CUTS AND 2020 OUTLOOK

Kashkari: Perhaps the most dovish member in the FOMC, the Minneapolis President had agreed with the Fed’s mid-cycle adjustment, however, prior to the first rate cut, Kashkari had advocated for a 50bps cut in June. For 2020, while Kashkari expects the central bank is done with easing for the time being, he stated that the Fed should not raise rates until core inflation hits its 2% target.

Mester: The Cleveland Fed President stated that she would have preferred the central bank to have not lowered interest rates and instead wanted to see more signs the economy was slowing down.

Kaplan: Had agreed to July and September rate cuts, however, he had been agnostic about a third consecutive rate cut. Regarding 2020, Kaplan expects interest rates to be left unchanged.

Harker: The Philadelphia Fed President agreed with the July rate cut, however, he was not on board with the September and October rate cuts.

Federal Reserve 2020 Meetings

January28-29

March17-18*

April28-29

June9-10*

July28-29

September15-16*

November4-5

December15-16*

*Meetings that include Staff Economic Projections

USD Forecast
USD Forecast
Recommended by Justin McQueen
Download our Comprehensive 1Q-2020 USD Forecast
Get My Guide

FEDERAL RESERVE HAWK-DOVE SCALE

Fed Monetary Policy Outlook in 2020: FOMC Voting Changes

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.