Attention is riveted on the Federal Reserve’s assembly set for May 1, with widespread anticipation that the U.S. central banking authority might lower the federal funds rate at this juncture of the year. Currently, market forecasts suggest a rate reduction is very unlikely, and Cleveland Federal Reserve President Loretta Mester has expressed her inability to […]Markets Tumble as Fed Rate Cut Expectations Diminish
Attention is riveted on the Federal Reserve’s assembly set for May 1, with widespread anticipation that the U.S. central banking authority might lower the federal funds rate at this juncture of the year. Currently, market forecasts suggest a rate reduction is very unlikely, and Cleveland Federal Reserve President Loretta Mester has expressed her inability to […]
On Wednesday, March 20, 2024, the Federal Open Market Committee (FOMC) declared that there will be no change to the federal funds rate for the time being. The committee emphasized its intention not to lower the target rate until there is “greater confidence that inflation is moving sustainably” toward the 2% target. Fed Pauses Rate […]
On Monday, Morgan Stanley’s equity strategist, Michael Wilson, shared his thoughts on the state of Wall Street. He expressed his belief that a sell-off could be imminent, and that this could occur as a result of U.S. Federal Reserve chairman Jerome Powell’s upcoming remarks on Wednesday. Furthermore, there has been a great deal of conjecture […]
On Wednesday, the U.S. Bureau of Labor Statistics published the Consumer Price Index (CPI) report, which noted that inflation rose 0.1% last month in March and 5% from a year ago. Annual inflation has dropped for nine consecutive months following the nine times the U.S. Federal Reserve raised the federal funds rate. U.S. Inflation Cools […]
After the March rate hike by the Federal Reserve, economists believe that the recent move by Saudi Arabia and several members of the Organization of the Petroleum Exporting Countries (OPEC) to cut oil production could complicate the central bank’s mission. Additionally, the majority of the market is pricing in another 0.25% increase for the May […]
With the Federal Open Market Committee convening on Wednesday and the recent financial troubles facing the U.S. banking system, White House press secretary Karine Jean-Pierre said President Joe Biden has “confidence” in Federal Reserve chair Jerome Powell. Meanwhile, according to the CME Group’s Fedwatch tool, the target rate probability suggests the Fed will raise the […]
The parent company of Silicon Valley Bank, SVB Financial Group, and two senior executives have been sued by shareholders after SVB’s collapse last Friday. The proposed class action accuses SVB of hiding the fact that interest rate hikes would leave the bank in jeopardy. Additionally, anonymous sources say the U.S. Department of Justice (DOJ) and […]
The U.S. Labor Department released the consumer price index (CPI) report on Tuesday. Although inflation increased in February year-over-year, the rise was expected, and the annual inflation rate for all items was 6%. The cooling inflation has eased some concerns, but fears of financial contagion have spread. Market strategists are further anticipating the U.S. central […]
U.S. inflation levels dropped slightly in January, sliding from 6.5% to 6.4%. However, inflation remains higher than expected, causing concern among investors that the U.S. central bank will continue to hike the benchmark federal funds rate. Inflation in the US Remains High, Causing Uncertainty in Markets Inflation in the United States exceeded expectations among analysts […]