Skip to Content
News & Analysis at your fingertips.

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. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Strategy Video: Should the Fed Lead the Next Monetary Policy Phase, Again?

Strategy Video: Should the Fed Lead the Next Monetary Policy Phase, Again?

John Kicklighter,

Talking Points:

• The exceptionally accommodative monetary policy for the world financial system will eventually normalize

• A first move to 'test the waters' by a well-placed central bank is a better approach than a forced change

• Given its position in the global system and its current economic state, the Fed is may be best disposed

Want to develop a more in-depth knowledge on the market and strategies? Check out the DailyFX Trading Guides we have produced on a range of topics.

Global monetary policy will eventually turn the corner and central banks will withdrawal the exceptional support and stimulus that has been pumped into the system. The primary question for this inevitability is "when". Given the different circumstances for the major economies and the growing evidence of risk born of the very stimulus aiming to revive the system, the timing is likely sooner than most investors are accounting for. This is very unlikely to be a situation where all the large players act at the same time. Some economies are still struggling near term and a distant effort would imply a rush response to a sharp change in environment to new problems. Therefore, a first mover with clout - to test the waters for the world's financial system - is likely. We consider the probability that the Fed will tighten in the near future and its big-picture implications for the Dollar and global markets.

Sign up for John’s email distribution list, here.

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