Wall Street Webcasting Presents: Wells Fargo Securities: “Markets Await This Week’s Fed Meeting for a Clearer Picture of an “Exit Strategy”.”
Wall Street Webcasting has prepared and provided for you an exclusive broadcast of Wells Fargo Securities own, Rich Gordon. Gordon is highly recognized for his weekly narrates regarding the fixed income strategy at Wells Fargo Securities (NYSE: WFC). This week, Gordon concentrates on the Fed meeting this week that is particularly important.
Investors are looking to see if the words “considerable time” get dropped from the minutes. Expectations of the first rate hike may relocate to the spring of 2015, contrary to the summer, given a more bearish mode in the statement. Fed Chairman, Janet Yellen, has a press conference directly following the minutes release and investors will be paying close attention to any interpretations regarding rate hikes.
The direction that the Fed will take is still up for analysis. The Fed can either begin to raise rates earlier, but more slowly, which would keep the Fed from falling behind the inflation curve and would give them some adaptability to reverse course if the economy slows down again. Secondly, the Fed can keep the rates at zero for a longer period of time and then raise them more rapidly later on if inflation increases or asset bubbles form in the broader markets.
Core inflation remains below 2% and the S&P is only marginally above its long-term average P/E ratio and is fairly lower than its remarkable highs. The prices of bonds will change based on the outcome of this Fed meeting. Either directly, or by omission, they’ll pinpoint a preference for either one path or the other.
To hear a more in depth explanation of what the Wells Fargo analysts’ predict may come of this Fed meeting, please into their latest video.
Please visit the following link to view the video:
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