![]() ![]() While some forecasters, such as Goldman Sachs, are seeing no change in rates, anticipating that the policymakers might take a step back from the aggressive tightening campaign that began just over a year ago. As of Friday afternoon, CME Group data showed that there was about a 75% chance of a quarter-point increase using fed funds futures contracts as a guide. "They have to do something, otherwise they lose credibility," said Doug Roberts, founder and chief investment strategist at Channel Capital Research. That will likely take the form of a 0.25 percentage point, or 25 basis point, increase, accompanied by assurances that there's no preset path ahead. However, a consensus has emerged that Fed Chairman Jerome Powell and his fellow central bankers will want to signal that while they are attuned to the financial sector upheaval, it's important to continue the fight to bring down inflation. The rate expectations have been swinging over the past two weeks, varying from a half-point hike to holding the line, and at one point, some talk that the Fed could cut rates. The Federal Reserve is likely to approve a quarter-percentage-point interest rate increase next week, despite the ongoing turmoil in the banking industry and the uncertainty ahead, according to market pricing and many Wall Street experts. US Federal Reserve Expected to Approve Quarter-Point Interest Rate Increase Amid Banking Industry Turmoil ![]()
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