The Fed hasn’t stopped beating the dead horse repeatedly saying that future interest rate decisions will be dependent on incoming economic data. What this really means is they don’t what the heck they will do at the next FOMC meeting yet, so they need chill first and look at recent data, and hopefully they’ll come up with something before the meeting starts.
I’ve created a fool-proof holy-grail-type formula on how to profit on the Fed’s current behavior. This took me years to develop and has been super duper top secret until now:
- If US economic data is good (yah), then the market will assume that the Fed will continue to raise interest rates, which would strengthen the dollar.
- If US economic data comes out bad (boo), then the market will assume that the Fed is done raising interest rates, which would further weaken the dollar.