Fed is expected to host “Expedited, Closed” meeting today at 4:30 pm London time.
It all sounds good and everyone is diving into the subject that this is it, the Fed is going to hike the rates, but I believe there is more than the Fed’s rate hike on the table for today, which I will summarize in this commentary.
The official website of the Fed covered today’s meeting with the following comment:
It is anticipated that the closed meeting of the Board of Governors of the Federal Reserve System at 11:30 AM on Monday, November 23, 2015, will be held under expedited procedures, as set forth in section 26lb.7 of the Board’s Rules Regarding Public Observation of Meetings, at the Board’s offices at 20th Street and C Streets, N.W., Washington, D.C. The following items of official Board business are tentatively scheduled to be considered at that meeting.
|1.||Review and determination by the Board of Governors of the advance and discount rates to be charged by the Federal Reserve Banks.|
A final announcement of matters considered under expedited procedures will be available in the Board’s Freedom of Information and Public Affairs Offices and on the Board’s Web site following the closed meeting.
Last 5 Free seats:
Looking at the above given statement one can expect this meeting to be about the details of the Fed’s rate hike expectations, but I am sensing this meeting to be rather odd, and I believe that the topics discussed will not be only about the rate hike, but there will be hidden agenda as well.
What is the Fed’s hidden “Expedited, Closed” Meeting Agenda ?
You might be wondering what is the Fed’s “Expedited, Closed” Meeting Agenda or does the Fed have any hidden agenda?! As much as I would like to say NO, “the Fed does not have any hidden agenda” I am afraid to tell you that there is always a hidden agenda that we ordinary traders only get to understand after a long period.
I believe today’s hidden agenda is about the US congress’ decision that the Fed should be audited and there should be a tool used by the Fed for their rate decisions, such as Taylor Rule.
According to the Fed Oversight Reform and Modernization Act restrictions placed on the Government Accountability Office would be lifted, enabling the agency to audit the central bank and narrowing its ability to provide emergency bailouts.
Summing it up, as the Fed is struggling with lower than expected inflation rates, we might as well end up seeing no rate hike in December from the Fed. May this be the topic of today’s discussion, we are likely to have bearish momentum accelerate on USD.