- Analytics
- News and Tools
- Market News
- Fed gathers for another 75 bps hike – Rabobank
Fed gathers for another 75 bps hike – Rabobank
Philip Marey, Senior US Strategist at Rabobank offered a brief overview of the upcoming FOMC monetary policy decision on Wednesday. The US central bank is all but set to hike interest rates by 75 bps and keep the door open for further policy tightening.
Key Quotes:
“The FOMC will start its two-day meeting that will lead to tomorrow’s rate decision, formal statement and press conference by Fed Chair Powell. We expect the FOMC to raise the target range for the federal funds rate by 75 bps to 2.25-2.50%. Meanwhile, the balance sheet reduction schedule is expected to remain unchanged. There will be no update of economic projections, so we only have the formal statement and Powell’s press conference to look forward to.”
“While FOMC speakers have pushed against a 100 bps rate hike this month, Powell may shed more light on the rate path beyond July, especially in relation to the stronger-than-expected CPI print on July 13. With headline inflation rising to 9.1% in June from 8.6% in May, against a Bloomberg consensus expectation of 8.8%, markets initially increased their speculations on a 100 bps hike in July. However, although the FOMC may not be ready to take a 100 bps hike, they may want to take a few more big rate steps in the remainder of the year.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
