Australian DollarChina EconomyUS Economy

Has the Fed short-circuited yuan falls?

David Llewellyn-Smith
Friday, 18 March 2016
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From Macquarie:

 The latest FOMC meeting turned more dovish, as Fed officials now expect 2 rate hikes by end-2016, compared with 4 last Dec. In the statement released after the meeting, the FOMC also added a new sentence, “Global economic and financial developments continue to pose risks.”

As the result, it could help lower the short-term depreciation pressure on the RMB, although risks remain in the medium term.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.