The U.S. Week Ahead (March 18-22), Breaking The Fed Code

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Includes: EDV, FLAT, IEF, IEI, SHY, SPUST2IP, SPUST2LP, SPUSTBIP, SPUSTBP, SPUSTBTR, STPP, TBF, TBT, TLT, UST, VGLT
by: Interactive Brokers
Summary

Investors will be watching for the Federal Reserve’s monetary policy decision and press conference in the week ahead for further insights into the central bank’s normalization process.

The FOMC noted at its January policy meeting it will be “patient” as it determines what future adjustments may be necessary.

With the rate of inflation having slowed somewhat in February, amid trade-related tariff effects on commodities and import prices, market participants generally expect the Fed to maintain its wait-and-see stance.

Meanwhile, data analytics research firm Sentieo has been employing Natural Language Processing to build predictive models of the Fed’s decision-making - based on its meeting statements and minutes.

Interactive Brokers’ senior market analyst Steven Levine talks with Jed Gore, senior data scientist at Sentieo, to discuss how he employs advanced technologies to better understand the trends behind the Fed’s rate hikes, cuts, and status quos.

Find out what Sentieo’s predictive models say about the Fed’s decision-making ahead of Wednesday’s monetary policy decision and press conference with Fed chair Jerome Powell!

Investors will be paying close attention to the conclusion to the FOMC’s monetary policy meeting Wednesday, March 20, with the Fed’s statement due out at 2:00pm ET, followed by Fed chair Jerome Powell’s press conference.

Note: This material was originally published on IBKR Traders' Insight on March 14, 2019.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Business relationship disclosure: I am receiving compensation from my employer to produce this material.

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