![]() ![]() On this basis, no policymaker expected the central bank's key rate to go above 4.75% as recently as September. While the Fed presents its rate as a range, the lower bound is typically seen as the shorthand rate. In September, the highest rates projected for 2023 reached the 4.75%-5.00% range. This document provides a summary of estimates provided by the central bank's top policymakers and accompanies the policy announcement with every other meeting. The Fed did not release a so-called dot-plot along with its rate decision this time around. With the effective rate now sitting at 4.00%, where will the terminal rate land? Given the latest signs from the Fed, the market is now anticipating the central bank's end game. ![]() At the same time, Treasury yields ( US2Y) ( US10Y) have spiked in the aftermath of the Fed's latest announcement. The Nasdaq led the late-Wednesday retreat, ending lower by more than 3%. equity averages ( SP500) ( DJI)( COMP.IND) ( SPY) into a tailspin. Meanwhile, market participants feared that rates could remain high for longer than previously expected.Īll this sent the major U.S. Wall Street generally interpreted Powell's latest commentary as signaling a slowing pace of rate hikes but with the possibility that the endpoint could reach higher levels than previously thought. The Federal Reserve once again raised rates by 75 basis points on Wednesday and while Fed Chair Jerome Powell softened his hawkish rhetoric somewhat, stocks dropped late in the session on the prospects that interest rates would continue to march higher. ![]()
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