With the increase that takes the fed funds rate to a range of 3.75%-4%, the Fed "can afford to slow the pace of rate hikes" as it assesses the hikes approved this year, wrote Paul Ashworth, Capital's chief North America economist. He's hanging in there," said Schumacher.Ĭhanges to the Federal Reserve's post-meeting statement along with another 0.75 percentage point interest rate hike Wednesday should be enough to indicate that the central bank is getting ready to slow down the pace of interest rate increases, according to Capital Economics. Stocks fell as the 2-year yield reach a high of 4.59% during Powell's comments. Stocks sold off after initially gaining after the Fed statement. They're not going to pause anytime soon." "His quote was that it's very premature to think about pausing. "Powell thinks the bias is they should tighten more than they would otherwise think, just so they should take out some insurance," said Michael Schumacher of Wells Fargo. The Fed raised its target rate by three-quartes of a point Wednesday afternoon.īut a hawkish Fed Chair Jerome Powell, who spoke a half hour after the Fed statement, sent Treasury yields and fed funds futures higher. The May contract reached that level after dipping to 4.93% after the Fed's policy statement opened the door to a potential reduction in the size of interest rate hikes. Traders bet the Fed could raise the fed funds rates to a high of 5.05%, before stopping its current rate hiking cycle. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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