All eyes on the FOMC.....

16/3/15

 

All eyes on the FOMC.....

The Federal Reserve's Open Market Committee (FOMC) is meeting this week to decide the course of US interest rates, with an announcement due on Wednesday. Whilst very few expect any immediate change to policy, surging US employment numbers mean that rate rises are in the pipeline for the future. The timing and extent of any rises is complicated by the rocketing value of the dollar (so harmful to exporters) and productivity levels that are failing to keep up with the employment rate. Look out for any signals given by Fed chairwoman Janet Yellen. For a detailed analysis of all the issues, see the Financial Times ("Five critical questions....." p.7 , and Opinion, p.15).

Grexit or Gexident ..... or what ?

 

With German and Greek officials seemingly as far apart as ever and the prospect of a shambolic Greek exit from the Euro looming ever closer, Wolfgang Munchau in the Financial Times ("Why smoke and mirrors ....", p.15) examines the arguments and possible outcomes (all of which seem pretty disastrous). He focuses on a radical alternative .... that of the introduction of a parallel crypto-currency to tide Greece over. Such a move would be far from straightforward and brings its own problems, but may be the best option, he argues. It would also still require a level of trust between all parties, and things may have gone too far for that.....