Italian Political Turmoil As The Main Factor Of Fed and ECB's Monetary Policy?

Forex News

Despite Italian political crisis has eased recently, some analysts suggest, that it may wind up influencing the policies of the Federal Reserve and European Central Bank in the coming months. It is said, that both central banks may be less aggressive in tightening monetary policy.

The ECB had been expected to announce the end of its bond buying program as early as this summer. Still, political tension in the Eurozone could force the politicians to postpone it, in order to keep monetary conditions as supportive as possible.

The US Federal Reserve is widely expected to raise interest rates two more times in 2018, but some economists forecasting three rate hikes. Now economists are saying the central bank will raise rates in June and then take a wait and see approach about further moves, with a hike in September now less certain.