Mixed messages from Fed driving market uncertainty

In this week’s video update:

  • Did hawkish statements by six Federal Reserve Presidents send mixed messages about inflation, possibly driving market uncertainty this week?
  • What role will Friday’s upward revision to the U.S. 4Q GDP number play in the Fed’s April decision to raise rates or not?
  • How did Japan’s economy benefit this week from a strengthening dollar and what are the implications for investors with exposure to Asia?

Chief Investment Strategist Erik Ristuben joins host Mark Soupiset on this week’s Market Week in Review webcast, in which Ristuben explains that – despite dovish remarks last week by U.S. Federal Reserve Chair Jane Yellen – six Fed presidents made hawkish statements about inflation concerns this week, seemingly raising the possibility of an April interest rate increase.

Ristuben explains that mixed messages from the Fed were key contributors to market uncertainty, as major U.S. equity averages ended their five-week win streak over the shortened trading week. Friday’s upward revision to the fourth quarter U.S. GDP also added fuel to the fire, increasing expectations for an April rate hike.

This week’s episode concludes with a look at what two strong Purchasing Managers Indices (PMI) in Europe could mean for investors with exposure to European equities, and why a stronger dollar, at least for the moment, has proven to be good for Japan’s Nikkei average.