![]() Financial Express quoted Kavan Choksi, a successful investor, business management, and wealth consultant at KC Consulting, as saying that the US might enter a recession in 2023 as the Fed won’t cut interest rates that might trigger counter-productive results for the skyrocketing inflation in the country. Analysts believe that we won’t be able to see interest rate cuts before Q4 2023 or early Q1 2024. Key Points The Federal Reserve is widely expected to hike rates by a smaller one-quarter of a percentage point at this week’s policy meeting as inflation starts to ease. Government spending represented one of the few positive growth drivers for 2023 as federal non-defense spending benefited from outlays associated with. A substantial development towards achieving the 2 per cent inflation target should be visible to get US Fed to cut interest rates. The Fed won’t cut interest rates until and unless inflation in the US gets under control. The same trend was visible across American and Asian stocks. Food and beverage stocks finished 0.7 per cent higher, while the IT sector saw the worst decline, falling 1.7 per cent. Leading Federal Reserve officials are sending out stronger signals that they will forego an interest rate increase at the central bank’s next meeting in June. The Stoxx 600 index for all of Europe dropped 0.2 per cent at the closing, with the majority of sectors trading down. The risks for bond investors from next week’s Federal Reserve meeting go well beyond whether officials decide to raise interest rates again. Investors around the world, including in Asia and Europe, are looking for hints about how much interest rate hike will be announced by the Fed in the face of rising inflation. European and American markets close lower FOMC meets at least 8 times a year, with additional meetings also lined up as required. 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. Federal Reserve officials, whose hike, skip or pause messaging on interest rates has become a high-stakes word puzzle for investors, seem ready to end the U.S. ![]() For a second consecutive meeting, the US Federal Reserve is expected to raise interest by a quarter percentage point. The announcement of the interest rate hikes by the Fed will be made on February 1 at 2:00 PM ET or 12:30 AM on February 2 as per IST. The meeting is of great interest to stock market players across the world. 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. ![]()
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