European markets are heading for a higher open Thursday as investors weigh up the economic outlook and interest rate trajectory.
If financial conditions continue to loosen, the Federal Reserve could be forced to push interest rates higher than expected, New York Fed President John Williams said Wednesday., conditions are at their loosest since April 2022. That has come despite eight interest rate hikes from the central bank in its attempt to rein in inflation.
"If financial conditions ... loosened a lot or got much more supportive of growth, that would be a factor that would have to influence our thinking about the future path of the economy and what we need to do in terms of monetary policy in order to achieve our goal," Williams said during a Wall Street Journal roundtable.
Looser conditions "might might imply a higher interest rate to make sure that we're getting to the goals that we're trying to achieve," he added. As things stand, he said projections in December of a fed funds rate in the 5%-5.5% range are probably accurate, implying increases of another 0.5 percentage point or so from the current level.CNBC Pro: Will the stock market rally last? Analysts share their predictions — and strategies
The tide seems to have turned since 2022 — markets have been rallying since the start of the year. But investors are wondering how long that will last.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
European markets head for positive open but global sentiment remains choppyEuropean markets are heading for a positive open Tuesday, although global sentiment remains mixed.
Read more »
Ransomware outbreak hits Florida Supreme Court, U.S. and European universitiesA global ransomware outbreak has scrambled servers belonging to Florida's Supreme Court and several universities in the U.S. and Central Europe, according to a Reuters analysis of ransom notes posted online to stricken servers.
Read more »
CBI issues alert for missing 14-year-old last seen ThursdayMISSING TEEN: The Colorado Bureau of Investigation has issued an Endangered Missing Alert for a 14-year-old who was last seen Thursday, Feb. 2.
Read more »
Colder weather, snow to move across Colorado Wednesday into ThursdayA cold front will move through Colorado late Wednesday and early Thursday with colder weather and light snow. This storm is not expected to be very strong. cowx
Read more »