Federal Reserve Shifts, as Markets React

Jack Crooks examines the most recent Federal Open Market Committee meeting. In this issue of Money and Markets, Mr. Crooks takes a closer look at what the Fed might have planned for the U.S. economy.

Jupiter, Fla. (PRWEB) May 7, 2008 -- Jack Crooks examines the most recent Federal Open Market Committee meeting. Mr. Crooks takes a closer look at what the Fed might have planned for the U.S. economy.

April 30 marked the culmination of the most recent Federal Open Market Committee meeting where officials discuss their forecast for prices and growth in the U.S. And, the Federal Reserve issued a brief announcement summarizing their meeting, letting the public know how they plan to guide the nation's economy. And what they are going to do with interest rates. Considering the ongoing evolution of economic and inflation conditions, it seems that every new meeting carries more significance than the last.

When the Fed shifts its stance, markets will react. As rate cut expectations changed ahead of April 30, so did the outlook on the markets likely to be impacted by a changing Fed policy. Conversation regarding a potential dollar bottom swept through pages of market analysis. The possibility that the Federal Reserve would focus their attention more on rising prices and less on the anemic growth, has given the dollar an opportunity to post some gains.

The Fed's decision didn't shift with expectations nor did the dollar's reaction with the dollar-bottom scenario. The dollar declined sharply in the hours following the announcement. However, the dollar came soaring back the very next day.

"Even though we're still dealing with the market's expectations, price action is supporting the dollar-bottom scenario. And I'm certainly not going to argue against a dollar rally when the dollar is rallying," Crooks states.

To read this issue online, please visit:
http://www.moneyandmarkets.com/Issues.aspx?Fed-Decision-Leaves-Traders-Chasing-US-Dollar-1743

About JACK CROOKS & MONEY AND MARKETS    

John (Jack) Crooks is the founder and president of Black Swan Capital, an independent advisory firm specializing in foreign exchange and currency markets investing for retail and institutional clients. A seasoned financial advisory with nearly 20 years of investment experience, Mr. Crooks uses both quantitative and qualitative approaches to determine the fundamental driving force(s) behind the movement of the currency, capital, and commodities markets. He is the editor of Weiss Research's latest investment offerings, World Currency Alert and World Currency Options, which were launched in August 2007.

Mr. Crooks also founded Ross International Asset Management, a discretionary money management firm specializing in global stock, bond, and currency asset management for retail clients. Previously, he was general manager of Plexus Trading, where he specialized in currency futures and commodities trading. During his successful career, Mr. Crooks served as chief currency and futures strategist of M2 Futures Inc., an investment boutique headquartered in Chicago, as well as vice president of Global Strategic Research for an international investment boutique, where he was responsible for providing daily advice and global strategy analysis.

Prior to entering the investment arena, Mr. Crooks held various corporate finance positions. He has written extensively on the subject of global currencies and international economics and has been published in Asian Times, Futures Magazine, Barron's, Bloomberg, Dow Jones Newswire, and across many financial websites. He has also appeared on Bloomberg TV and CNBC.

Mr. Crooks holds a bachelor's degree in finance from Florida State University and a master's in business administration from the University of North Texas.

Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.

###