Fed

2024 - 6 - 13

Fed's Interest Rate Dance: What the Future Holds

Federal Reserve - Inflation - Interest Rates - Market Reactions

Discover the latest updates on the Fed's rate cuts and market predictions. Is the US central bank leading or lagging behind? Find out more!

The Federal Reserve's decision-making and economic projections have been in the spotlight, with expectations of multiple rate cuts this year. Despite the Fed's recent move to hold rates steady, Asian equity markets and bonds are still projected to remain attractive to investors. In a surprising turn, Fed policymakers anticipate just one rate cut for this year, but a significant shift to 4 cuts by 2025 according to recent economic projections.

The Fed's cautious approach has led to speculations about the reflation appetite in the market, as indicated by the revised inflation forecasts and a reduction in projected rate cuts for 2024. While the central bank appears to be stepping back from the election cycle limelight with no immediate rate cuts planned, inflation data continues to play a crucial role in their decision-making process. Despite the median projection for one interest rate cut, the markets remained relatively calm and unfazed by the news.

As the Fed grapples with a trillion-dollar pile of potential losses turning into real losses, investors are advised to stick with Bitcoin as a hedge against market uncertainties. With expectations of falling inflation, the possibility of two rate cuts later this year remains open, starting as soon as September. Federal Reserve Chair Jerome Powell's cautious stance on interest rates reflects a careful approach based on future inflation forecasts, aiming for stability and prudent monetary policy decisions.

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Image courtesy of "The Business Times"

'Door open' for multiple cuts this year despite Fed's move to hold ... (The Business Times)

They also expect the Asian equity market and bonds to remain attractive to investors despite the delay in rate cuts by the US central bank. Their comments ...

Fed policymakers see just one rate cut this year, 4 cuts in 2025 ... (Hellenic Shipping News Worldwide)

That's according to the median of new economic projections published on Wednesday by the Federal Reserve at the end of their June 11-12 meeting along with the ...

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Image courtesy of "FXStreet"

Risk on as Fed, US CPI renews reflation appetite [Video] (FXStreet)

The Federal Reserve's (Fed) dot plot plotted one rate cut for 2024, down from three in March and the Fed revised its inflation forecasts higher.

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Image courtesy of "Reuters"

In new forecasts, Fed appears to bow out of the election cycle (Reuters)

The U.S. Federal Reserve may have just ducked out of the presidential campaign spotlight with a fresh set of forecasts showing no interest rate cuts are ...

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Image courtesy of "Asia Times"

Inflation is cooling but not fast enough for the Fed (Asia Times)

It was a double whammy for economic data enthusiasts. During the morning of June 12, 2024, the Bureau of Labor Statistics published its latest inflation.

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Image courtesy of "Yahoo Finance"

The Fed isn't really taking 2 rate cuts off the table (Yahoo Finance)

The Federal Reserve's median projection for one interest rate cut did little to rattle markets on Wednesday.

Fed's $1 trillion pile of paper losses are turning into actual losses ... (Morningstar.com)

How did the Fed get here? The central bank aggressively used its balance sheet during the 2007-2009 financial crisis and the 2020 COVID-19 market panic to sop ...

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Image courtesy of "Coindesk"

Stick With Bitcoin, 10x Research Says After Fed Predicts Just One ... (Coindesk)

BTC tends to rally after softer-than-expected CPI releases, 10x said. The Fed will eventually signal more rate cuts, the research firm added. ETF inflows ...

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Image courtesy of "Morningstar"

Cautious Fed Sees One Rate Cut in 2024 (Morningstar)

But we think falling inflation will allow the Federal Reserve to make at least two interest rate cuts this year, starting in September.

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Image courtesy of "The Economic Times"

FOMC decision: Is Fed FOMC outcome hawkish or dovish? Here's is ... (The Economic Times)

The US Federal Reserve maintained rates at 5.25-5.50% in its June monetary policy, with Chair Jerome Powell expressing caution about the inflation outlook ...

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Image courtesy of "Yahoo Finance"

In new forecasts, Fed appears to bow out of the election cycle (Yahoo Finance)

Central bank policymakers on Wednesday kept their benchmark interest rate unchanged at 5.25%-to-5.50%, where it has been since last July.

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Image courtesy of "Livemint"

Stung by past mistakes, a wary Fed takes its time | Mint (Livemint)

Federal Reserve Chair Jerome Powell's approach to cutting interest rates based on forecasts that inflation will continue moving lower could be summed up by ...

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Image courtesy of "Livemint"

What does Fed's indication of single rate cut mean for Indian IT ... (Livemint)

The optimism of markets and the buoyancy of stocks hinge largely on sentiment and projections, which investors closely scrutinise to gauge future market ...

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Image courtesy of "Financial Times"

The Fed refuses to celebrate (Financial Times)

Using the metric Unhedged prefers (month-over-month change annualised), core CPI inflation fell to the Fed's 2 per cent target in May. Huzzah. The three- and ...

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Image courtesy of "Livemint"

US Fed Policy: Hawkish stance 'stale' after core CPI cools to 3-year ... (Livemint)

US Fed Policy: Several Wall Street analysts eye more than one rate cut in 2024 after May's inflation data boosted expectations of a change in the monetary ...

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Image courtesy of "Yahoo Finance"

Treasuries Rally After Strong $22 Billion US Sale: Markets Wrap (Yahoo Finance)

(Bloomberg) -- Treasuries rallied after a solid $22 billion sale of 30-year bonds and as a cooldown in a key measure of inflation reinforced the case for ...

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Image courtesy of "OilPrice.com"

Falling Energy Prices Spark Hopes for Fed Rate Cuts (OilPrice.com)

US inflation unexpectedly remained flat in May, raising expectations for the Federal Reserve to consider interest rate cuts in the near future.

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Image courtesy of "JP Morgan"

June 2024 Fed Meeting: Fed Maintains Current Policy Rate, Sees ... (JP Morgan)

The Federal Reserve left rates unchanged for the seventh consecutive meeting and now envisions only one rate cut in 2024. Read more about the implications ...

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Image courtesy of "The New York Times"

Why Investors Don't Believe the Fed (The New York Times)

Markets appear to be dismissing the central bank's more pessimistic take on inflation, as the S&P 500 nears a new high.

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Image courtesy of "Reuters"

Morning Bid: The day after the Fed (Reuters)

While the central bank on Wednesday pushed out the start of rate cuts to perhaps as late as December, markets (and many economists) beg to differ. Traders price ...

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Image courtesy of "Inc.com"

The Fed Still Hasn't Won the Inflation War. Wall Street Expects a ... (Inc.com)

Jerome Powell says the economy is humming along and policymakers don't plan to hike rates.

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Image courtesy of "Reuters.com"

Ultra-loose financial conditions turn up summer heat on Fed ... (Reuters.com)

The virtuous cycle of loosening U.S. financial conditions and booming asset prices is accelerating rapidly as inflation continues to cool, which could be a ...

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Image courtesy of "Finimize"

Fed Holds Rates Steady Amid Predictions For 2024 Cuts (Finimize)

Major banks offer different timelines and amounts for the next potential rate cuts.

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Image courtesy of "The Business Times"

Fed needs more time to gain confidence before it starts loosening ... (The Business Times)

THE US Federal Reserve curbed the market's enthusiasm with a sobering rate outlook on Wednesday (Jun 12), and did so by design.

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Image courtesy of "The Star Online"

Fed leaves interest rates unchanged (The Star Online)

The Federal Reserve (Fed) held interest rates steady on Wednesday and pushed out the start of rate cuts to perhaps as late as December as policymakers ...

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Image courtesy of "Bloomberg"

Fed Rate Cut Latest: Powell Shows Scars of Early-2024 Inflation Jump (Bloomberg)

I'm Chris Anstey, an economics editor in Boston, and today we're looking at the new Fed policy outlook. Send us feedback and tips to [email protected] ...

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Image courtesy of "Marketplace.org"

Why is the Fed cautious about interest rates? - Marketplace (Marketplace.org)

Where's all this going? First, some producer price index 101. The PPI for final demand, as the report is officially called, measures the prices producers ...

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Image courtesy of "Finimize"

Booming US Asset Prices Challenge Fed's Rate Strategy (Finimize)

What does this mean? Loosening financial conditions and declining inflation have driven Wall Street to new highs and pushed bond yields to two-month lows. With ...

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Image courtesy of "The Indian Express"

US Fed decision: Staying hawkish (The Indian Express)

Fed's restraint gives RBI another reason to desist from cutting domestic interest rates too soon.

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Image courtesy of "Livemint"

Mint Quick Edit | Expect a longer wait for a Fed pivot | Mint (Livemint)

The US Federal Reserve's latest policy decision has again dampened hopes of a rate cut, with its March forecast of three rate cuts in 2024 scaled down to ...

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Image courtesy of "Yahoo Finance"

Australia's No. 2 Pension Predicts Fed Can Control Soft Landing (Yahoo Finance)

(Bloomberg) -- Australia's second-largest pension fund, Australian Retirement Trust, is betting the Federal Reserve can support the conditions for a ...

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Image courtesy of "The Global Treasurer"

Fed's Mixed Messaging Is Giving Investors a Headache (The Global Treasurer)

The Federal Reserve opted to maintain interest rates at their current level of 5.25% to 5.5%, a two-decade high at it's Federal Open Market Committee meeting ...

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Image courtesy of "The Australian Financial Review"

RBA: Traders ascribe a 78pc chance the US Federal Reserve will ... (The Australian Financial Review)

Bond yields fell globally after US data suggested the jobs market and price pressures were cooling, boosting hopes of a September rate cut from the Federal ...

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Image courtesy of "The Wall Street Journal"

How the Fed Can Cut Rates This Summer Without Cutting Rates (The Wall Street Journal)

The Federal Reserve could start guiding down rate expectations well before it pulls the trigger on actual cuts.

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