before the FOMC rate decision, Bloomberg interview Paul Volcker, ex Fed chairman, who raise rates to 10% to curb runaway inflation. He expects the economy to level off. And he stressed that the Banks would not be nationalised, and Banks still have problems.
The significant part of the FOMC was what they did not say. They did not announce further purchase of Treasuries.
The last annoucement has generated the rise from 750 to 888 almost 130 points. The effect of monies printing is obvious, and the FED is pulling back.
This would give grounds for the bulls to halt the rally in due time. This has stopped USD index from making a drop through significant support.
We would see USD holding strong, Euro to drift lower towards 1.2400 from current 1.3200. How far the Stock market would pull back, is not known yet. Gold would probably retest 1000, now in the beginning stage of wave 3 up.
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