- Analytics
- News and Tools
- Market News
- Bond market to do the Fed’s work, making further policy rate hikes redundant – Rabobank
Bond market to do the Fed’s work, making further policy rate hikes redundant – Rabobank
In a speech and Q&A at the Economic Club of New York, Fed Chairman Jerome Powell tried to keep his options open by maintaining a neutral stance. Economists at Rabobank analyze the Fed’s policy outlook.
Skipper Powell still proceeding carefully
Earlier this year, Powell said that he saw possible tightening in credit conditions following the small banking mini-crisis in March as a substitute for rate hikes. However, he is still hesitant about applying the same logic to rising treasury yields. Strong employment growth and GDP growth are likely to keep the door open to further hikes. However, with less than two weeks to go before the next meeting, today’s neutral performance does not suggest that we are going to see a hike on November 1. But that option is still open for the December meeting.
Nevertheless, we still expect the bond market to do the Fed’s work, making further policy rate hikes redundant. However, we continue to see upside risk to our baseline forecast. If economic data remain strong, sooner or later the FOMC will have to resume its hiking cycle.
© 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
