Debate unfolds as to what Bannon’s removal means for the Trump administration's economic agenda. See how his departure is affecting the market, especially in regard to the Jackson Hole meeting this week.
The USD is higher across the board after the Fed finally announced its much awaited rate hike. The market had already priced in the 25 basis points rate hike to the Fed funds rate, but the hawkish tone of the FOMC statement, dot plot and Fed Chair Janet Yellen’s press conference have boosted the USD and solidified the strong dollar rally. Improving U.S. economic conditions were cited and the expectation now is of at least 3 rate hikes in 2017. The effect of those improved forecasts have been felt around the globe.
Are investors back to trading risk? U.S markets started this week under modest pressure after oil producers failed to reach a deal on an output freeze in Doha over the weekend. Naturally, the energy complex started the week gapping lower, along with the commodity sensitive bloc of currencies. Nevertheless, bargain basement hunters did appear mid-session yesterday and eventually pushed the Dow Jones Industrial average to surpass the +18k psychological mark for the first time in nearly a year.