Carl Johan von Seth: Fed leaves Skalmanmetoden – enters in Lille Skutt-location

As expected, left the u.s. central bank its key interest rate untouched at 2.5 per cent. But what the world really was waiting for was the truth, and a coherent plan forward.

It also got the financial markets to rejoice and stock markets to rise was a fairly clear taktikskifte. Chairman Jerome Powell will now leave a kind of Skalmanmetod behind, with a period when the Fed has raised interest rates regularly, almost like after a food and sleep-watch.

It will be in any case more of a Lille Skutt method in the USA's central bank. Powell to hold off, look carefully at the turmoil in the global economy, following turmoil in the financial markets and adapt the strategy according to what happens.

Perhaps there will be no more interest rate hikes. It depends on whether the slowdown that is starting to feel globally is actually noticeable in the labour market and inflation in the united states.

the Fed chief had some problems to justify their shift on Wednesday. The us economy's outlook has actually not deteriorated significantly since december, when the central bank raised its key interest rate and Powell signaled that even more steps were at the time. Now is the vibes softer, despite the fact that the economy, in some respects, seems to have stabilized.

Donald Trump was irritated in conjunction with the decemberbeskedet. But rather than have the weight for him appears the Fed have gone the nervous financial markets to the meeting. Wednesday's announcement also had a calming effect.

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