Started by forex4you, Sep 21, 2023, 06:00 am
0 Members and 1 Guest are viewing this topic.
The Federal Reserve announced that rates remain unchanged with a target range of 5.25% to 5.5%. HOwever, the dot plot of rates showed that the vast majority of the voting members still see one more Fed hike between now and the end of the year. Moreover, they took a big leap of 50 basis points on their projection for end-of-year Fed Funds rate from 4.6% to 5.1% implying a 50 basis point decline in the year..
In other details, the Fed sees
Admittedly, the dynamics of the economy are head-scratching at times. Rates have soared, but unemployment remains near all-time low levels, growth is still greater than expectations and inflation although lower is still remaining sticky.
The market reaction was more hawkish.
Looking at some of the major currency pairs:
Looking at the US yield curve:
Shifting over to the US stock market, the major indices closed near their lows for the day:
For the trading week, with more than half over, the Dow industrial average is down -0.51%, the S&P is down -1.08%, and the NASDAQ index is down -1.75%. The NASDAQ and S&P are working on their 3rd straight week lower.
PS Below is a summary of the comments from Fed Powell by topic:
Page created in 0.034 seconds with 15 queries.