The Fed is thinking about stopping the rate hike.

In the last speeches of the Fed, we have seen changes in tone. The Fed in 2019 will pay more attention to trends in economic data - such as inflation, unemployment, business activity, investment, and output.

Such statements tell us about what we already guessed - the Fed is close to its goal in raising rates. Despite a strong economy, the GDP growth is about 3.5% per annum, a very high level of employment while the unemployment is below 4%. At the same time, relatively moderate inflation, not higher than 3.5%, has caused a serious problem the US state with a big public debt worth 20 trillion dollars.

The cost of servicing government debt is a heavy burden for the US budget and every increase in the Fed rate increases these costs.

Thus, a pause in the Fed rate increase is quite possible and for the US budget, it is highly desirable.

Carefully look at the "minutes" of the Fed on Wednesday, 28th of November.

(Announcement of a stop in the Fed rate hikes is a growth signal for the euro).