Fed meeting

The Federal Reserve's Federal Open Market Committee (FOMC) will conclude its 2-day monetary policy on Wednesday at 2:00pm ET, with Fed Chairman Jerome ...

The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. Any clear hint about a pivot to a 50bps rate hike in December could take the greenback below this key support zone around 109.50, opening the door for a pullback toward 108.00 next, whereas a “full steam ahead” message around interest rates would reinvigorate the dollar uptrend and take the dollar index back toward its highs above 114.00. Any hints in the monetary policy statement or (more likely) Fed Chairman Powell’s press conference that these discussions have started could provide an immediate boost to risk assets and a pullback in the US dollar. Notably, traders are currently pricing in a peak Fed Funds rate around 4.9% in May 2023, and this is where we’re more likely to see expectations shift (and by extension, market movements) in the wake of this week’s Fed meeting. The stakes couldn’t be higher for this month’s FOMC meeting.

LIVE UPDATES US Fed Reserve FOMC Meeting November 2022 Date, Time, Press Conference News: The FOMC holds eight regularly scheduled meetings during the year ...

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Stocks Analysis by Jani Ziedins covering: S&P 500, iShares Core S&P 500 ETF, SPDR® S&P 500, S&P 500 Futures. Read Jani Ziedins's latest article on ...

Wait 30 minutes for the market to make up its mind, but once the next move starts, grab on and enjoy the ride. Expect some volatility surrounding the Fed’s rate announcement, but this one will be less important than the ones that came before it, so expect a little less volatility than we got before. We buy strength, we sell weakness, and we repeat as many times as the market allows us. Now, everything could change today, but as long as we remain above 3,800, the latest rebound is alive and well. As much as people love trying to pick tops by proclaiming every red day is the start of the next big crash, the simple truth is the market spends far more time going up than down. In reality, most red days are little more than filler between up days and odds are good Monday’s losses are nothing more than one of those filler days in the October rebound.

The Fed could keep raising the borrowing cost for longer, according to major investment banks.

CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). Fed to hike by another 150 bps this year, then stop." Traders expect the rate hike cycle to peak at around 4.8%, down from the terminal rate of 5% priced two weeks ago, according to the futures tied to the Fed funds rate. dollar] and could see the broad dollar rebound this week," Barclays' credit research team said. "While the market badly wants a pivot, slower doesn't mean lower." Further, employment costs continue to rise at the double the rate registered over the past 15 years. [strict set of editorial policies](/ethics/). The markets appear to have run ahead of themselves in pricing a slowdown in terms of both frequency and magnitude of rate hikes starting from December. That's significantly higher than the annual inflation target of 2%. Food and energy are increasingly scarce. The Fed has raised the borrowing cost by 300 basis points (bps) this year, roiling risk assets. It could signal a step down to 50 bps hike in December.

US stocks dipped ahead of a consequential Federal Reserve meeting this week, at which the central bank is expected to offer some clues about its path ...

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Stocks dipped on Tuesday as traders assessed better-than-expected economic data and prepared for another likely rate hike from the Federal Reserve.

[Stryker](https://www.cnbc.com/quotes/SYK/) dropped 5.5% after it reported a miss on the top line in its latest quarterly results. [Avis Budget Group](https://www.cnbc.com/quotes/CAR/) jumped 2% after the budget car rental company reported per-share earnings of $21.70, above expectations of $14.64 per share, according to Refinitiv. "The stock market surge since the last Fed meeting in mid-September only strengthens Powell's case for continuing to tighten financial conditions." "In our view, this is almost guaranteed to spark a significant (not shallow) recession." "November has historically been one of the strongest months of the year for U.S. manufacturers signaled a slight improvement in operating conditions thanks to the easing of supply chain disruptions, but weak demand conditions weighed on growth. [Uber](/quotes/UBER/) jumped 12% after the company [reported revenue that exceeded Wall Street's expectations](https://www.cnbc.com/2022/11/01/uber-q3-2022-earnings.html) and gave better-than-anticipated guidance for its fourth quarter. Week of March 11 (%) He also said he could see a market low setting in the first quarter of next year if corporate earnings move lower with three "good" quarters following. "At this point, with inflation surprising as much as it has already, the Fed will want to see clear signs of reversal in wage growth before pivoting. "A Fed pause is not the same as a pivot. "Any time you get good news, the market doesn't like it because it just means that the Fed is probably going to be tightening more and potentially for longer," said Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research.

Equities edged higher ahead of the Federal Reserve's policy meeting Wednesday after a cautious open in Asia as Chinese stocks continued to climb from lows ...

A [gathering](https://www.bloomberg.com/news/articles/2022-11-01/hong-kong-fights-to-prove-it-s-still-a-dominant-financial-hub) of global bank executives in Hong Kong also helped support sentiment in the financial hub. [Covid-zero](https://www.bloomberg.com/news/articles/2022-11-02/china-stocks-retreat-after-rally-as-reopening-speculation-vetted) policy.

Wall Street analysts will be focused Wednesday on what Federal Reserve Chairman Jerome Powell says about whether the central bank might slow down ...

Now You Can Find Out](https://www.wsj.com/articles/is-your-colleague-earning-more-than-200-000-a-year-now-you-can-find-out-11667294343?mod=trending_now_news_2) [New WSJ Poll Finds GOP Prospects Rising](https://www.wsj.com/articles/gop-prospects-rise-amid-economic-pessimism-wsj-poll-finds-11667295002?mod=trending_now_news_3) [Fed’s Pace of Future Interest-Rate Rises in Focus at Meeting](https://www.wsj.com/articles/fed-meeting-to-focus-on-interest-rates-coming-path-11667295181?mod=trending_now_news_4) [Professional Cornhole Has a Cheating Scandal Called BagGate](https://www.wsj.com/articles/cornhole-cheating-scandal-baggate-11667312803?mod=trending_now_news_5) That would mark their fourth consecutive increase of that size as they seek to reduce inflation [by slowing the economy](https://www.wsj.com/articles/cash-rich-consumers-could-mean-higher-interest-rates-for-longer-11667075614?mod=article_inline). on High Alert After Warning of Imminent Iranian Attack](https://www.wsj.com/articles/saudi-arabia-u-s-on-high-alert-after-warning-of-imminent-iranian-attack-11667319274?mod=trending_now_news_1) [Is Your Colleague Earning More Than $200,000 a Year? [Up to 15% off + free shipping at Wayfair](https://www.wsj.com/coupons/wayfair) [their benchmark federal-funds rate](https://www.wsj.com/articles/fed-set-to-raise-rates-by-0-75-point-and-debate-size-of-future-hikes-11666356757?mod=article_inline) by 0.75 percentage point this week to a range between 3.75% and 4%. [Get 15% off AE promo code with text alerts](https://www.wsj.com/coupons/american-eagle-outfitters)

(Bloomberg) -- Asian stocks were mixed on Wednesday following declines in US shares as hopes that the Federal Reserve would soften its hawkish stance faded ...

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The major U.S. averages finished lower on Tuesday after fresh economic data showed the U.S. labor market is still tight. The.

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While not as crazy as the mid-summer rally, this current rally also is likely to fail, sending stocks to fair value, and probably lower.

This will continue to change as the rest of the numbers come in – my guess is that these numbers will come in a bit lower for Q3 and then will be revised down more in Q4. My guess is that the estimates for 2022 will not be hit and that the insane estimates for 2023 of nearly $240 per share in earnings are missed by a mile. [The Fed may still be behind the curve](https://wolfstreet.com/2022/10/28/last-most-important-inflation-measure-for-the-feds-meeting-next-week-core-pce-worsened-for-2nd-month-in-a-row/), raising the possibility of a 75 basis point hike in December and a further rise in rates to over 5% from there to finally squash inflation. The inference here is that the Fed funds rate is going to have to go north of 5% to meaningfully bring down core inflation. The implication is that there's likely to be a harsh recession that brings inflation to normal levels. And of course, you've got OPEC trying to put the squeeze on the US with crude oil [production cuts](https://www.cnbc.com/2022/10/05/oil-opec-imposes-deep-production-cuts-in-a-bid-to-shore-up-prices.html). [ rates may need to go higher](https://www.wsj.com/articles/cash-rich-consumers-could-mean-higher-interest-rates-for-longer-11667075614) than the market is expecting – floating a figure as high as 5.5%. Financial markets are reflexive – people buy stocks betting on a Fed pivot, but the very act of them doing it makes prices go up and makes that less likely to happen. And if you do want to invest in stocks, it's hard to deny [the unfavorable difference](https://www.yardeni.com/pub/stockmktperatio.pdf) in valuation between the top-heavy SPY and small-cap ( [IJR](https://seekingalpha.com/symbol/IJR)) and mid-cap indices ( [IJH](https://seekingalpha.com/symbol/IJH)) that trade at substantial valuation discounts. Other traders saw this too because they dumped long-term bonds en masse that day, starting to challenge the "Fed pivot" in a similar way that the market challenged the Bank of England earlier in the month. 14, [Liz Truss fired](https://www.reuters.com/world/uk/uk-finance-minister-kwarteng-has-been-sacked-bbc-2022-10-14/) Chancellor Kwasi Kharteng, signaling the end of the experiment and sending yields lower. [Jackson Hole meltdown](https://seekingalpha.com/article/4537703-stock-market-jackson-hole-meltdown-next-steps) in August when traders were forced to face the reality that the Fed would not be bailing out their speculative bets on tech stocks.

The US Federal Reserve may announce a 75-basis-point hike in federal funds rate at the end of its two-day monetary policy meet tonight is a given for investors globally. But what investors would want to see is a dovish Fed, opening the door for a ...

[Sensex](https://economictimes.indiatimes.com/indices/sensex_30_companies)and [Nifty](https://economictimes.indiatimes.com/indices/nifty_50_companies)Track [latest market news](https://economictimes.indiatimes.com/markets/stocks), [stock tips](https://economictimes.indiatimes.com/markets/stocks/recos)and [expert advice](https://economictimes.indiatimes.com/markets/expert-view)on [ETMarkets](https://economictimes.indiatimes.com/markets). For fastest news alerts on financial markets, investment strategies and stocks alerts, [subscribe to our Telegram feeds](https://t.me/joinchat/J60pKE7SOStsj5sI8nDmHQ).) According to a survey done by ETMarkets, nearly 59% of the respondents see a limited downside and a low level of volatility in equities. [Jerome Powell](/topic/jerome-powell)on rates and the central bank’s assessment of the economy will be closely eyed. Investors across the globe would look for a guiding path on rates for the rest of the year and for 2023. After its meeting in September, the central bank had guided for a 125 bps hike in interest rates by the end of 2022 and saw the projected target range to be at 4.25-4.50%.

European markets nudged higher on Wednesday as global investors focused on the conclusion of the U.S. Federal Reserve's policy meeting.

[Read the full story here.](https://www.cnbc.com/2022/11/02/bank-of-england-set-for-biggest-rate-hike-in-33-years-but-economists-expect-dovish-tilt.html) Many analysts expect the meeting will result in a 75 basis point interest rate hike. "At this point, with inflation surprising as much as it has already, the Fed will want to see clear signs of reversal in wage growth before pivoting. stock futures](https://www.cnbc.com/2022/11/01/stock-market-futures-open-to-close-news.html) were broadly higher as investors braced themselves for the expected Fed hike. "A Fed pause is not the same as a pivot. However, the Fed will need several months of data to go its way before changing course. inflation running at a 40-year high of 10.1% in September](https://www.cnbc.com/2022/10/19/uk-inflation-rate-rises-to-10point1percent-as-food-and-energy-prices-continue-surge.html), the Bank is seen hiking its main lending rate for the eighth consecutive time, but weaker growth momentum and a major shift in fiscal policy is expected to ease calls for more aggressive monetary tightening. [Brent crude futures](/quotes/@LCO.1/) gained $1.31, or 1.46%, to stand at $95.87 per barrel, while [U.S. West Texas Intermediate](/quotes/@CL.1/) rose 1.28% to $89.67 per barrel. central bank could pause its hikes or reduce their size in the coming months. [Read the full story here.](https://www.cnbc.com/2022/11/02/shipping-firm-maersk-a-barometer-for-trade-warns-of-dark-clouds-on-the-horizon.html) [shares in the Asia-Pacific](https://www.cnbc.com/2022/11/02/asia-markets-fed-rates-south-korea-inflation-cpi-currencies.html) and [U.S.

The Federal Reserve is expected to raise interest rates by 75 basis points Wednesday but also signal it could begin to slow down the size of its rate hikes ...

... But I think the market wants to believe that the Fed, they're going to get to 5% and stay there for awhile. "You're seeing it in some of the retailer slowdowns, and you're certainly seeing it in the surveys. Gapen expects the economy to dip into a shallow recession in the first quarter. The 75 basis point hike Wednesday would take the fed funds rate range to 3.75% to 4%, from a range of zero to 0.25% in March. "So in reality, the market already thinks this is happening, and from my point of view, there's no way the outcome of his press conference is going to be more dovish than that." The stock market has already rallied on expectations of a slowdown in rate hikes by the Fed, after a final 75 basis point hike Wednesday afternoon. "I think the way the market is pricing, I think that's what they're going to do, but I think he's really got to thread the needle on not getting people too excited about the direction of travel. "The market is very fixated on the fact there's going to be 75 in November, 50 [basis points] in December, 25 on Feb. He expects the Fed to raise rates to a level of 4.75% to 5% by spring, and that would be its terminal rate — or end point. He expects the Fed would then raise interest rates by a half percentage point in December. "We think they hike just to get to the end point. A basis point is equal to 0.01 of a percentage point.

US Fed meet: The Federal Open Market Committee will raise rates by 75 basis points for a fourth consecutive meeting when policymakers announce their ...

Kansas City Fed President Esther George dissented in June in favor of a smaller hike, warning that too-abrupt changes in interest rates could undermine the ability of the Fed to achieve its planned rate path. Beyond slowing rate hikes, the economists see the Fed eventually reversing course in response to lower growth and inflation. Nearly a third of economists expect a dissent at the meeting, which would be the third of 2022. The Fed is reducing assets by up to $1.1 trillion a year. The rate path that economists expect is similar to the one foreseen by markets. He would be preparing for the markets for a 50 basis-point hike in December but which will also be accompanied with a dot plot, which shows 5% terminal rate.” The risk of a policy mistake is high.” Economists see the Fed as determined not to pivot too soon as it fights against an inflation rate at a 40-year high. Fed Chair Jerome Powell has said the central bank is strongly committed to restoring price stability and he’s repeatedly invoked his predecessor, Paul Volcker, who boosted rates to unprecedented levels to counter inflation in the early 1980s. Powell and his colleagues have not given up hope that they can pull off a soft landing for the economy. The economists expect the Fed to continue its announced reductions in its balance sheet, which started this June with the runoff of maturing securities. The shift to a higher peak rate would reflect consumer-price growth, excluding food and energy, that came in hotter than expected for the past two months.

Rates markets are set on a 75-bps rate hike this week.

Rates markets see a 103% chance of a 75-bps rate hike in November (a 100% chance of a 75-bps rate hike and a 3% chance of a 100-bps rate hike), with a 50-bps rate hikes favored in December (a 100% chance of a 50-bps rate hike and a 47% chance of a 75-bps rate hike). [DXY](https://www.dailyfx.com/us-dollar-index) Index, the shape of the US Treasury yield curve, and Fed rate hike odds. [USD/JPY](https://www.dailyfx.com/usd-jpy): Retail trader data shows 29.80% of traders are net-long with the ratio of traders short to long at 2.36 to 1. We can measure whether a Fed rate hike is being priced-in using Eurodollar contracts by examining the difference in borrowing costs for commercial banks over a specific time horizon in the future. October 5 – Daly gave her support for additional 75-bps rate hikes, and commented that “we’re data dependent. Kashkari (Minneapolis president) affirmed that “there’s a lot of tightening in the pipeline. Nevertheless, the hotter than expected September US inflation report (CPI) and the strong September US nonfarm payrolls report suggest that aggressive policy tightening efforts will continue in 2022. But overshooting is costly, too, and there is great uncertainty about how restrictive policy must actually become.” September 30 – Daly reiterated that “our No. For these reasons, we are committed to avoiding pulling back prematurely.” I think we’re quite a ways away from apause.” In this edition of Central Bank Watch, we’ll review comments and speeches made by various Federal Reserve policymakers before the communications blackout window ahead of the November Fed meeting.

The Federal Reserve looks set to deliver a fourth straight super-sized rate increase with Chair Jerome Powell repeating his resolute message on inflation ...

The Federal Reserve is expected to raise interest rates by three-quarters of a percentage point for the fourth straight time on Wednesday, but open the door ...

The rate hike the Fed is expected to deliver on Wednesday will move the target federal funds rate 75 basis points higher to a level between 3.75% and 4.00%. "Resilient data raises further the risk that any slowdown is paired with hawkish communication that policy rates could rise for longer and to higher terminal rates." Separate reports showed consumer prices rising 8.2% in the 12 months through September, and a different index preferred by the Fed still more than triple the central bank's 2% target. The job market remains strong. Data since the Fed's Sept. Register for free to Reuters and know the full story

There's also a chance it could trigger a recession. While Fed Chair Jerome Powell has stressed that persistent, entrenched inflation would bring greater ...

Sales of [newly constructed homes](https://www.cnn.com/2022/10/26/homes/new-home-sales) dropped 10.9% in September from August and were down 17.6% from a year ago. The much bigger question is around how the Fed signals its future policy path,” wrote Luke Bartholomew, senior economist at abrdn, in a note. They will be closely watching Powell’s post-meeting press conference to see if he lays the groundwork for a step down in the pace of rate hikes. Friday’s upcoming jobs report is expected to show the economy added another 205,000 positions in October, down from last month but still historically high. That’s the highest the fed funds rate has been since January 2008. There’s also a chance it could trigger a recession.

The Fed is expected to issue its next jumbo-sized rate hike Wednesday, but then what? Investors are hoping for a more dovish stance from the central bank ...

- "Although some chatter in the markets has predicted over the last week a more dovish stance in December, there has been only a very minor change in Fed Fund futures for 75 bps in November and 50 bps in December. The idea that the Fed would initiate a smaller 50-basis point rate hike in December has been telegraphed for some time and I would not interpret this as a signal that there will be rate cuts any time soon, which is a message that Powell is likely to deliver on Wednesday." Chairman Powell has repeatedly made the point that the stop and start Fed policy in the 1970s, led by Arthur Burns, was a mistake as it allowed stagflation to build and made tackling it much more difficult. - "While there are some encouraging signs that inflation is slowing, the Fed will likely still raise the federal funds rate a big three quarters of a percent at their decision Wednesday. - "The Federal Reserve will likely continue hiking interest rates to slow aggregate demand and attempt to bring demand and supply back into balance. Rising unemployment should fix some of the imbalances between the number of individuals looking for work and firms with open positions." If we are correct, there will need to be sharp correction in the markets and we hope the committee has finally learned that presenting a unified front requires more than a unanimous vote at the conclusion of their deliberations." - "A 75-basis point rate hike on Wednesday should be fully expected, as the unemployment rate is still at a 50-year low and there is nothing to suggest that Powell will soften his stance on fighting inflation. - "Since this week's deliberation will not include updated economic projections or a dot plot, the approach the chairman takes in his post-meeting press briefing will set the tone for the financial markets for the next several weeks now that markets have rallied in the hopes a pivot will be announced. Given the data on inflation and lack of any break in the tight labor market, we believe the chairman will emphasize the risks of pausing too soon over the risks of overtightening as the main driver of policy. And so all eyes are on what Powell has to say at the post-decision press conference. Market participants desperately want – no matter how unlikely – for the central bank to show any signs of taking a more dovish stance going forward.

Treasury yields were little changed and the yen strengthened in a sign traders anticipate a muted impact of Fed tightening on the currency. Focus will be on Fed ...

Moller-Maersk A/S, a bellwether for global trade, cut its forecast for the global container market, saying demand will shrink as much as 4 per cent this year and could also contract in 2023 as an economic slowdown weighs on bookings. - The offshore yuan rose 0.3 per cent to 7.2893 per dollar Healthcare stocks outperformed in Europe after Novo Nordisk A/S raised its operating profit and sales forecasts for the year. Mining and energy shares gained as oil rallied on reports of dwindling U.S. - The Japanese yen rose 0.8 per cent to 147.10 per dollar The Hang Seng Index rose in a session cut short by a storm warning. - The euro rose 0.1 per cent to US$0.9889 Former Treasury Secretary Larry Summers also warned that expectations the central bank would pivot were “badly misguided,” saying the Fed should “stay on the current course.” Traders are weighing mixed economic data ahead of the Fed meeting, where the central bank is expected to raise interest rates by 75 basis points for the fourth time in a row. European investors are grappling with an energy crisis, a looming recession and soaring prices. stocks steady ahead of Fed meeting; U.S. U.S.

Recession risks are growing, but the Federal Reserve is sticking with aggressive interest rate increases for now.

Elizabeth Warren (D-Mass.) and Bernie Sanders (I-Vt.), issued a [letter](https://www.warren.senate.gov/imo/media/doc/2022.10.31%20Letter%20to%20Fed%20re%20Monetary%20Policy.pdf) to Powell warning that the Fed against inflicting needless harm. [ramped up their criticism](https://www.washingtonpost.com/business/2022/10/27/fed-democrats-rate-hikes/?itid=lk_inline_manual_25) of the central bank, arguing that such massive rate hikes will inevitably hurt the labor market. [job market](https://www.washingtonpost.com/business/2022/10/07/september-jobs-report-labor-market/?itid=lk_inline_manual_21) remains remarkably resilient and is still churning. The unemployment rate is low at 3.5 percent, and employers are still eager to hire new workers, with the number of [job openings](https://www.washingtonpost.com/business/2022/10/23/federal-reserve-job-vacancies-labor/?itid=lk_inline_manual_21) rising in September to 10.7 million. [said](https://www.federalreserve.gov/mediacenter/files/FOMCpresconf20220921.pdf) when the Fed raised rates in September. Compounding the challenge is that interest rates are blunt and only target demand in the economy. Outside the Fed, inflation has become a major issue for voters and candidates ahead of the midterm elections. Economists and Fed watchers also note that the Fed’s decisions are also amplified as central banks around the world Rate hikes take months to fully sink into the economy, and the growing fear is that the Fed will outrun its ability to gauge whether its policies are working. Core inflation, a measure closely watched by the Fed that strips out more volatile categories such as food and energy, also came in hot. Yet that fight is drawing increasing criticism, from economists and lawmakers, that the Fed is The bank is moving at a level of intensity not seen in decades.

U.S. stocks edged lower ahead of the Federal Reserve's policy decision. The losses were broad-based, with all 11 sectors of the S&P 500 slipping.

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There are many reasons for the Federal Reserve chairman to maintain a hawkish stance on rate hikes.

The committee’s policy statement is out at 2 p.m. That would mean the sixth rate hike of 2022 and fourth-straight 0.75 percentage-point bump. Markets won’t get their much-anticipated all-clear signal from the Fed.

Investors will be looking to see whether the central bank plans to take a "step down" from its monetary policy path.

"We continue to expect the Fed to step down to 50bp in December and 25bp in January, reaching a peak rate of 4.625%." "We think the Fed will be reluctant to pre-commit to a smaller rate hike this far in advance. "We expect the Fed to remain data dependent and emphasize cumulative policy rate tightening over any step down in pace," Bank of America said in a client note. Instead, the meeting is about future policy rate guidance and what to expect in December and beyond." "For this to occur, the Fed would need to signal a near-term 'step-down.'" A basis point is one one-hundredth of one percentage point. "We expect the FOMC to deliver a fourth 75bp rate hike at its November meeting, and indicate that it could soon be appropriate to step down the pace of hikes," Morgan Stanley chief U.S.

UK's FTSE 100 index slipped on Wednesday, weighed down by cyclical sectors and shares of British American Tobacco, as investors awaited a key U.S. Federal ...

interest rate rise](/markets/us/fed-set-another-big-rate-hike-may-tamp-down-future-tightening-2022-11-02/) later in the day that will stifle economic activity. "It is after a certain level that interest rate hikes start hitting company results. [(NXT.L)](https://www.reuters.com/companies/NXT.L) rose 1.6% after the clothing retailer [stuck to its earlier guidance](/business/retail-consumer/britains-next-maintains-profit-outlook-after-sales-rise-2022-11-02/). [(.FTMC)](https://www.reuters.com/quote/.FTMC) rose 0.1%, lifted by Lloyd's of London insurer Hiscox [(HSX.L)](https://www.reuters.com/companies/HSX.L) after it posted a 6.3% rise in gross premiums written. [(AML.L)](https://www.reuters.com/companies/AML.L) slumped 15.3% after the [luxury carmaker](/business/autos-transportation/aston-martin-warns-margin-hit-supply-chain-disruptions-2022-11-02/) cut its annual deliveries and margin forecasts, blaming global supply chain issues. [(.FTNMX551020)](https://www.reuters.com/quote/.FTNMX551020), oil & gas [(.FTNMX601010)](https://www.reuters.com/quote/.FTNMX601010) and chemicals [(.FTNMX552010)](https://www.reuters.com/quote/.FTNMX552010) fell between 0.8% and 2.5% as the market braced for [a big U.S. [(BATS.L)](https://www.reuters.com/companies/BATS.L) tumbled 5.5% to the bottom of the index after Goldman Sachs downgraded the stock to "neutral". [The Thomson Reuters Trust Principles.](https://www.thomsonreuters.com/en/about-us/trust-principles.html) [(.FTSE)](https://www.reuters.com/quote/.FTSE) closed down 0.6% after touching a near six-week high in the previous session. [expected](/world/uk/bank-england-hike-by-75-bps-nov-3-may-go-bigger-2022-10-25/) to tighten rates by 75 basis points on Thursday. Register for free to Reuters and know the full story

Stocks initially surged as traders cheered the hint of a possible slowing in tightening. However, major averages then declined when Fed Chair Jerome Powell said ...

[Airbnb](https://www.cnbc.com/quotes/ABNB/)— The lodging stock fell about 6.8% after hours even after the company reported better-than-expected quarterly earnings and revenue. [Paramount Global](https://www.cnbc.com/quotes/PARA/) — Shares of the media company dropped more than 11% after quarterly results missed expectations, as it [suffered from cord-cutting](https://www.cnbc.com/2022/11/02/paramount-global-para-earnings-tv-revenue-falls-.html) and a drop in advertising revenue. [Match Group](https://www.cnbc.com/quotes/MTCH/)— Shares of the dating app operator jumped 16% after the company posted higher-than-expected revenue for the third quarter, according to StreetAccount. [Paramount Global](https://www.cnbc.com/quotes/PARA/) – The media company's stock dove 8% in the premarket after it missed top and bottom line expectations for the recent quarter. [Mattel](/quotes/MAT/) and [Hasbro](/quotes/HAS/) have also recently said they are preparing for [more promotions](https://www.cnbc.com/2022/10/25/toymaker-mattel-cuts-annual-profit-forecast-as-inflation-drags-demand.html) compared to last year. [Caesars Entertainment](https://www.cnbc.com/quotes/CZR/) – Caesars' stock rallied 7.7% in premarket trading after the resort operator topped analyst estimates for both the top and bottom lines. [Estee Lauder](https://www.cnbc.com/quotes/EL/) – The cosmetics maker's stock sank 9.5% in premarket trading after it issued a weaker-than-expected outlook. [statement hinted at a possible policy change](https://www.cnbc.com/2022/11/02/heres-what-changed-in-the-latest-federal-reserve-statement.html) in the future. "The reaction to price increases for Chegg Study that was initiated back in mid-July (prices rose from $14.95 to $15.95 for monthly subscribers) has been favorable. [Tupperware Brands](https://www.cnbc.com/quotes/TUP/) — Shares of the household storage products maker plunged 42% after a third-quarter earnings miss. [Chegg](https://www.cnbc.com/quotes/CHGG/) — The education stock surged more than 22.2% after the company beat estimates on the top and bottom lines for the third quarter. [10-year Treasury](/quotes/US10Y/) traded 7 basis points lower to 3.97% after trading above 4% earlier in the day.

The Federal Reserve delivered its latest monetary policy announcement, with the central bank hiking rates by 75 basis points, or 0.75 percentage point.

The strategist said Powell will have to be careful in how he crafts the statement because he could raise market expectations for a less aggressive Fed. "Rate hikes from here will be more cognizant of the new economic environment we're in with respect to the much higher cost of capital and economic clouds that are circling," he said. As in, Wall Street will be looking for the central bank to "step down" from its current tightening path. "Will there be discussion about the potential for 50 basis points in December? We're somewhat surprised to see the 'soft pivot' in the statement itself and we expect that Powell will double down on this narrative at the press conference. "From a cost benefit perspective, it doesn't do as much damage to the asset markets and to the broader economy… "We've always said it was going to be difficult, but to the extent rates have to go higher and stay higher for longer it becomes harder to see the path. ... And that's why I've said at the last two press conferences that at some point it will be important to slow the pace of increases. The Fed raised its target rate by three-quartes of a point Wednesday afternoon. The Fed's outlook may be less one-sided, but reaffirming its bias to fight hard against inflation – and the 2% inflation target – is likely to remain a market headwind until inflation conditions improve." The level of interest rates will also be higher than previously expected, he said. "Chairman Powell made it clear that his bias is to err on the side of over-tightening rather than under-tightening in order to avoid the risk of inflation becoming entrenched," said Yung-Yu Ma, chief investment strategist, BMO Wealth Management.

As the Fed begins to hint at a pause in interest rates, the December rate decision will provide clues for the timeline.

Equally if the Fed moved rates up just 0.25 percentage points, a pause could be more imminent in 2023. Currently futures market imply a 0.5 percentage-point hike in rates as the most probable scenario and perhaps the start of a progression to a pause in rates. That would imply the Fed could pause hiking rates at its March 2023 meeting. That means the Fed may pause rates before inflation data becomes much more rosy. “The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time. That scenario is seen as quite possible, but less likely than a 0.5 percentage point move in December. Now this doesn’t mean that any pause is imminent, given how far ahead the Fed plans, but it is likely looking to tee at least a smaller rate hike if data plays out as anticipated. However, Fed Chair Jerome Powell did indicate at the November press conference that it was “very premature” to be talking about a pause in rising rates. So, yes, the Fed will be watching other economic indicators, too, just as you would expect. However, the Fed is discussing what it would take to ultimately ease off on rate hikes. However, Powell commented that the U.S. With its November statement, the Fed has offered an early signal that we may be getting closer to peak interest rates of around 5%.

The Fed introduced a key change to its policy statement on Wednesday, which Wall Street traders are interpreting as a sign that the central bank could soon ...

Text appearing for the first time in the new statement is in red and underlined. Text removed from the November statement is in red with a horizontal line through the middle. Notably, the statement now says that the Fed is considering the "cumulative" impact of its hikes so far.