Video: Kathy Lien Talking about Fed’s Rate Decision

March 18, 2009

I was on the Business News Network talking about the implications of the Federal Reserve’s monetary policy announcement. They “note” that they are talking about is my FOMC Instant Insight posted on FX360.com. They are on the free mailing list, so make sure you get on as well.

Here is basically what they announced:

(1) committed to buying $300 billion of longer-term Treasuries
(2) increased the terminal size of the MBS purchase program from $500 billion to $1.25 trillion
(3) increased the terminal size of the agency debt program from $100 billion to $200 billion
(4) committed to keeping rates low for “an extended period,” rather than just “for some time.”

You can listen to the interview by clicking the image. What I didn’t get a chance to say is that today’s decision should lead to more losses for the U.S. dollar. Therefore I am bullish the EUR/USD and bearish USD/JPY. I think the EUR/USD could hit 1.38 in the near future.

Posted in FOMC, Fed Rate Cut, Forex TV, forex blog