Marc Ostwald, Market Strategist at ADM Investor Services, joined Nick Batsford, CEO of Tip TV, and Zak Mir, technical analyst for ShareProphets.com, on the Tip TV Finance Show to discuss the Fed rate hike chances and US QE in great detail, plus his view on the idea of reigniting currency wars.
What to expect on Wednesday, and what effect withdrawing QE will have on US economy?
Ostwald noted that the market is looking for a dovish dot-plot as to the timing and strength of future rate hikes from the Federal Reserve. However, he disagreed with this view and highlighted the 18 months in which the central bank has carved out room to manoeuvre as a reason for the Fed trajectory to not be dovish. Ostwald continued to the $2.6 trillion worth of QE in the US economy, and commented that we are unsure of the effect has in the system and thus we don’t know what will happen when this QE is withdrawn.