FOMC

Lindsey M. Piegza, Stifel: "While recession risks remain, particularly as the consumer continues to lose momentum, for the Fed, emerging weakness should not ...

Although the FOMC might be inclined to adjust this language as it approaches a pause, doing so at this meeting has little upside and risks widening the gap between the market and the Fed, while also leading to an undesirable easing of financial conditions.”\n\nJoseph Brusuelas, RSM US LLP: “While we think it’s premature to engage in a strategic pause to restore price stability it is likely that it will soon be the case…Given the Fed’s likely deceleration in its rate hike campaign we think the first opportunity to put in place such a pause will be following the April meeting which implies a 25-basis point hike in March and then in April.” \n\nIan Shepherdson, Pantheon Macroeconomics: “A wholesale retreat from the Fed’s hawkishness is unlikely; that will have to wait until the March meeting, by which time the Fed will have seen two more rounds of the key growth and inflation data.”\n\nMatthew Luzzetti, Deutsche Bank: “The statement is likely to keep the reference to "ongoing" rate hikes. Remember, the Fed is intentionally trying to slow the economy."

US fed rate hike latest update: The stage is set for the first Federal Open Market Committee (FOMC) meeting slated to be held on January 31-February 1, ...

The Fed won’t cut interest rates until and unless inflation in the US gets under control. The US Fed earlier resorted to a modest interest rate hike of 50 basis point increase in December after 4 consecutive interest rate hikes of 75 basis points. US fed rate hike latest update: The stage is set for the first Federal Open Market Committee (FOMC) meeting slated to be held on January 31-February 1, 2023.

The market has been quick to dismiss the Fed's hawkishness and price in a lower terminal interest rate in recent meetings...

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. 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. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Spot Gold and Silver contracts are not subject to regulation under the U.S. Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. All opinions and information contained in this report are subject to change without notice. Interestingly, and despite more signs emerging that the US is potentially heading into a recession, small-cap and domestically focused stocks rallied to send the Russell index above a key resistance zone. If that’s the case, we may see follow-up technical buying towards the August 2022 high at around 2032 in the days to come. Fed Chair Jerome Powell is likely to keep further hikes on the table and lean against bets they will cut later this year, something which may get interpreted as being hawkish. Yesterday saw the major US indices recover strongly after being lower on the session. US index futures have held onto the gains made yesterday with the dollar remaining undermined against the euro, pound and yen. If this is the case, it would mark another downward step after the 50 basis points in December, following four 75 basis-point hikes earlier last year.

"There are really only two ways for the FOMC to trigger a clear hawkish reaction by the financial markets – either by hiking by 50bps and suggesting more is ...

[Get it here](https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD). [check out eFX Plus](https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD). "The first option is just too aggressive and is very unlikely given the flow of data since the December meeting.

Ain't nothing but the Fed today as investors focus on the FOMC interest rate decision. The Fed is all but certain to raise rates by 25bps but the comp.

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Updates on FOMC Rate Decision Today, Chair Jerome Powell's News Conference · Fed hikes rate by 25 basis points, signals more coming · Powell says policy to stay ...

- The S&P 500 jumped more than 1% after Powell said the “disinflation process has started.” Treasuries also rallied and the dollar slumped as traders absorbed Powell’s remarks. Powell in his press conference all but ratified that as the current plan, saying it would take a “couple more” hikes to get to an appropriately restrictive policy. - The FOMC raised the benchmark rate by 25 basis points, as expected, to a target range of 4.5%-4.75%.

The 12-member committee is likely to tone down pace of interest rate hike, a glimpse of which was seen in the December Montary Policy where the US Central ...

The two-year yield, which tends to move more on expectations of Fed actions, rose to 4.27% from 4.20%. The central bank's next decision on rates is coming Wednesday, and most investors expect it to announce an increase of just 0.25 percentage points. But job cuts may be starting to spread to other areas of the economy. The big question is whether Fed Chair Jerome Powell will give what markets want to hear? Beyond interest rates, more than 100 companies in the S&P 500 are scheduled this week to report how much profit they made in the last three months of 2022. Because these companies are three of the four biggest on Wall Street by market value, their stock movements carry much more sway on the S&P 500 than others. The two-day meeting will be followed by a press conference by Fed Chair Jerome Powell where he is expected to announce a 25bps interest rate hike along with guidance on inflation and US GDP. Even the CME fed watch tool indicates more than 99% probability of 25 bps rate hike in the February meeting That's an indication that the strong January enjoyed by the S&P 500 so far is more about improving sentiment on Wall Street than about better fundamentals, strategist Savita Subramanian wrote. Government will also give its latest monthly update on the job market. The yield on the 10-year Treasury rose to 3.53 per cent from 3.51 percent late Friday. The rally in index was supported by ICICI Bank, ITC and State Bank of India (SBI).

FOMC, Dollar, S&P 500, ECB and BOE Rate Decision Talking Points: · The Federal Reserve hiked its benchmark rate 25bps to a range of 4.50 – 4.75 percent · The US ...

Fed Fund futures are pricing in a 4.90 percent rate through the June contract, which is a premium to the three largest counterparts: ECB (3.17), the BOE (4.39) and of course the BOJ (0.11). If the tighter conditions lead to a recession, the second round effect on investor confidence should not be missed as a by-product of monetary policy. Taking a bigger picture look at monetary policy rates across the globe, it is important to remember where the Fed sits in the global spectrum. However, that decline was sharply reversed without hitting any critical technical levels as investors looking for greater clarification on the path forward.Ultimately, through both hawkish and dovish remarks from the head of the Federal Reserve, the equity market drew upon the more supportive remarks pushing the S&P 500 to its highest levels since September above 4,100. The increase was a further step down in pace from the 50 bp increase in December and the 75 bp hike in November – following a stretch of four consecutive such heavy hikes. [Federal Open Market Committee](https://www.dailyfx.com/fomc) (FOMC) announced a 25 basis point increase in its benchmark rate range to 4.50 – 4.75 percent.

The Fed's quarter-point rate hike was welcomed by the market and market pros, alike.

Slowing the pace of rate hikes is a clear sign that the Fed is getting comfortable with the idea that the prescribed policy for the economy is finally starting to work. This tells us that the Fed is near the end of the tightening cycle, and they are getting ready to sit tight while the economic data catches up to the policy. On balance, the meeting tilted slightly dovish, and the end of the tightening cycle appears to be on the horizon." Powell emphasized that the Fed is vigilant to the risk of inflation stays high in 2023, especially since inflation of sticky services prices (services excluding shelter costs) continues to run hot. On the other hand, Powell acknowledged that the disinflationary process the Fed expected, with supply chains normalizing and goods prices cooling, is finally playing out, and it makes sense to think this disinflationary process would spread more broadly to services prices in the near-term." The Fed will now embark upon a process of slow and steady rate hikes of 25 bps moves, in order to better observe the incoming data and be able to react accordingly. Consequently, the Federal Reserve can now move policy rates at a more normal pace, after a series of dramatic moves, from very large (75 basis points, bps, for 4 meetings), to large (50 bps at the last meeting) and finally now to a more normal 25 bps clip. However, although there was not a hint at the terminal rate on the statement, the Fed Chairman indicated that there could be 'a couple of more rate hikes from here.' He also said that we will have to wait until the March Summary of Economic Projections to see where the members of the FOMC see the terminal federal funds rate." Inflation is poised to ease further in the coming months, which will give the Fed some leeway to end its rate hiking campaign. "The Federal Reserve (Fed) increased the federal funds rate by another 25 basis points and indicated that they will continue to look at incoming data to decide on the next steps regarding monetary policy. The FOMC is in the fine-tuning stage of its tightening cycle, and future rate hikes will depend on incoming data in coming weeks and months." But he also noted that the Committee 'has more work to do' in terms of monetary tightening to bring inflation back to the FOMC's target of 2% on a sustained basis.

The US Dollar slide has continued after the New York close post the Fed hiking rates and Powell putting a dovish tilt in the mindset of the market.

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AUD/USD jumped around 1% as the US dollar slumped more broadly after the FOMC statement and especially Powell's press conference. If you need a catch up:.

There are still some tipping an 'on hold' but many of them are relenting in the face of the horrific CPI data and switching to the February rate hike camp. OK, as for the Australian dollar. Its going higher folks, beginning with a 25bp rate hike coming next Tuesday, February 7 (that's IMO but its consensus). Also acting as tailwinds for the AUD in recent days and weeks have been: AUD was marked higher, alongside pretty much everything against the US dollar. [Federal Reserve hike rates by 25 basis points, as expected](https://www.forexlive.com/centralbank/federal-reserve-hike-rates-by-25-bps-vs-25-bps-expected-20230201/) [Powell opening statement: We have more work to do](https://www.forexlive.com/centralbank/powell-opening-statement-we-have-more-work-to-do-20230201/) [Powell Q&A: It is important that financial conditions reflect policy restraint in place](https://www.forexlive.com/centralbank/powell-qa-it-is-important-that-financial-conditions-reflect-policy-restraint-in-place-20230201/) [Powell opens the door to rate cuts this year "if inflation comes down much faster"](https://www.forexlive.com/centralbank/powell-opens-the-door-to-rate-cuts-this-year-if-inflation-comes-down-much-faster-20230201/) [A comparison of the December 2022 FOMC statement to the February 2023 statement](https://www.forexlive.com/centralbank/a-comparison-of-the-december-2022-fomc-statement-to-the-february-2023-statement-20230201/) [The full FOMC statement from the February 2023 Federal Reserve meeting](https://www.forexlive.com/centralbank/the-full-fomc-statement-from-the-february-2023-federal-reserve-meeting-20230201/)

“Markets are embracing our longheld forecast that the US central bank will be forced to lower interest rates in H2 2023. It would be a mistake for the Fed to ...

The BoE will announce its interest rate decision at 12:00 GMT this ‘Super Thursday’, publishing the Minutes of the meeting and Monetary Policy Report (MPR) alongside. The rally of these altcoins can be attributed to the volatility generated by the interest rate decision and the Fed’s policy meeting that took place on Wednesday. Gold price is sitting at the best levels seen in the last ten months above $1,950, as bulls take a breather after two back-to-back days of solid gains. The author makes no representations as to the accuracy, completeness, or suitability of this information. The pair is sitting at the highest level in 10 months, as the US Dollar licks the dovish Fed decision-inflicted wounds. That said, the Dollar looks oversold at this stage and we think a temporary rebound is possible in the coming weeks, as we have not yet confirmed a change in the Fed's policy direction.” The author will not be held responsible for information that is found at the end of links posted on this page. The author has not received compensation for writing this article, other than from FXStreet. It also does not guarantee that this information is of a timely nature. It would be a mistake for the Fed to persists in raising its key rate well beyond the current level and holding it there for an extended period if inflation continues to surprise on the downside.” FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. The greenback continues to weaken in the new year.