Market opens higher, trying to bounce after some tough consecutive sessions of late. The narrative is the same; the Fed and Brexit. The Fed’s 2-day meeting winds up today with a statement that will be scrutinized for clarity. The British vote next week is so critical to the global economy as well as global politics. It will certainly have influence on our Presidential election in November. Right now, the status quo is completely under assault, and radical change is gaining momentum. The theme of what government is doing is not working and it is not just the thinking in the US. The British are feeling it big time. This is a moment. Global Markets continue to operate under stress. Money keeps seeking safety.
The Fed is expected to keep interest rates unchanged today as multiple concerns are growing around the world which impact the global economy. U.S. hiring saw a massive slowdown in May and Britain’s possible departure from the EU are seemingly at the top of the list. Key will be economic projections and the famous dot plot in today’s statement. There is a press conference to follow, which provides opportunity to gain additional clues on the health of the economy, the trajectory of hikes and the the Fed thinking and potential impact of a British exit from the EU.
Have a great day.