http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/ Should You Sell Your Bonds Before the Fed Sells Theirs? The US Federal Reserve is set to start unwinding it $4.5 Trillion bond portfolio. Should you sell your bonds before the Fed sells theirs? CBS News reports that when the Fed shrinks its bond portfolio interest rates will go up. And what else will happen? The Federal Reserve is getting set to announce Wednesday how it will unload its massive holdings of long-term bonds. Unwinding the $4.5 trillion portfolio would tend to put upward pressure on long-term rates, especially mortgage ones. The Fed is hiking interest rates two ways. For short-term borrowings, it is boosting rates in increments of a quarter percentage point, and is expected to do that again on Wednesday. Then there are the long rates: Fed Chair Janet Yellen is widely anticipated to detail a plan to gradually lighten the Fed’s bond trove, which consists of Treasuries and mortgage-backed securities. “This will be measured and deliberate,” said Greg McBride, chief financial analyst for Bankrate.com. “The impact will be on the long end of the curve,” mainly affecting corporate bond and mortgage rates, whose yields often are correlated to 10-year Treasury notes. What should you be doing with any short and long term bonds that you own and how will the Fed’s action affect your USD trades? The point of the Fed’s bond purchasing program was to keep interest rates as low as possible during the recovery from the Great Recession. Their program was successful and the economy is better, unemployment is at its lowest level in half a century and inflation is starting to raise its ugly head. The Fed will act to raise interest rates ahead of significant inflation so both bond selling and short term interest rate raises are sure bets. What should you be doing before the Fed sells their bonds and raises short term rates gradually higher? How about the Economy? The assumption underlying the Feds action is that the economy will slowly but surely continue to improve. Is that a certainty? Reuters reports that Fed rate hikes beyond June are not a sure thing. The point is that the expectation of Trump’s policies stimulating the economy is not that strong.

1. Should You Sell Your Bonds
Before the Fed Sells Theirs?
By www.ForexConspiracyReport.com

2. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
The US Federal Reserve is set to
start unwinding it $4.5 Trillion
bond portfolio.

3. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
Should you sell your bonds
before the Fed sells theirs?

4. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
Before We Continue…
Click the links below to get your
FREE training materials.
Free Weekly Investing Webinars
Don’t miss these free training events!
http://www.profitableinvestingtips.com/free-webinar
Forex Conspiracy Report
Read every word of this report!
http://www.forexconspiracyreport.com
Get 12 Free Japanese Candlestick Videos
Includes training for all 12 major candlestick signals.
http://www.candlestickforums.com

5. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
CBS News reports that when
the Fed shrinks its bond
portfolio interest rates will go up.
And what else will happen?

6. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
The Federal Reserve is getting
set to announce Wednesday how
it will unload its massive holdings
of long-term bonds.

7. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
Unwinding the $4.5 trillion
portfolio would tend to put
upward pressure on long-term
rates, especially mortgage ones.

8. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
The Fed is hiking interest rates
two ways.

9. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
For short-term borrowings, it is
boosting rates in increments of a
quarter percentage point, and is
expected to do that again on
Wednesday.

10. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
“This will be measured and
deliberate,” said Greg McBride,
chief financial analyst for
Bankrate.com.

11. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
“The impact will be on the long
end of the curve,” mainly
affecting corporate bond and
mortgage rates, whose yields
often are correlated to 10-year
Treasury notes.

12. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
What should you be doing with
any short and long term bonds
that you own and how will the
Fed’s action affect your USD
trades?

13. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
The point of the Fed’s bond
purchasing program was to keep
interest rates as low as possible
during the recovery from the
Great Recession.

14. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
Their program was successful
and the economy is better,
unemployment is at its lowest
level in half a century and
inflation is starting to raise its ugly
head.

15. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
The Fed will act to raise interest
rates ahead of significant inflation
so both bond selling and short
term interest rate raises are sure
bets.

16. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
What should you be doing before
the Fed sells their bonds and
raises short term rates gradually
higher?

17. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
How about the Economy?

18. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
The assumption underlying the
Feds action is that the economy
will slowly but surely continue to
improve.

19. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
Is that a
certainty? Reuters reports
that Fed rate hikes beyond
June are not a sure thing.

20. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
The point is that the expectation
of Trump’s policies stimulating the
economy is not that strong.

21. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
The U.S. Federal Reserve will
raise interest rates twice more
this year

22. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
but conviction for a move beyond
a widely expected rise this month
has faded for many forecasters
along with the outlook for inflation
for most, a Reuters poll showed.

23. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
Growing doubts about the U.S.
administration’s ability to pass tax
and healthcare reforms through
Congress

24. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
along with weak U.S. economic
data, have pushed Treasury
yields to the lowest since after
Donald Trump’s shock election
victory in November.

25. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
Still, the latest poll of 100
economists conducted this week
showed the Fed was certain to
push interest rates up by 25 basis
points to 1.00-1.25 percent at the
June 13-14 meeting.

26. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
The consensus view from the poll
is for the central bank to follow
that up with another 25 basis
point increase in the third quarter
to take the fed funds rate to 1.25-
1.50 percent.

27. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
The Trump White House is stuck
in a quagmire of its own making
regarding Russian election
hacking and firing the FBI director
being seen as obstruction of
justice.

28. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
Meanwhile all of the election
promises of lower taxes,
repatriated foreign cash, and
deregulation are going nowhere
as the dollar fades.

29. http://www.forexconspiracyreport.com/should-you-sell-your-bonds-before-the-fed-sells-theirs/
The dollar will rise with higher
rates and bond selling and it will
fall with a slowing economy. Take
your pick.