The Federal Reserve's upcoming meeting on Wednesday will be one for the history books.
by three-quarters of a point for the third consecutive time, to 3%, or it will hike them by an unprecedented one full percentage point to 3.25%.Wall Street is divided on whether the Fed will keep hiking rates aggressively in November, or if inflation pressures will cool enough to allow the central bank to slow the pace for a bit,As such, experts' forecasts for the Fed's key short-term rate after the November meeting range from 3.5% to 4%.
"This data will likely encourage the Fed to continue staying in overdrive but also increases the odds that sooner or later they will make a policy mistake by tightening financial conditions too much to fight inflation," said Timothy Chubb, chief investment officer at Girard, in a report. Investors have no clue where rates might be by the middle of next year, as forecasts for July 2023 range from a low of 3.25% to a peak of 5%. What's more, other central banks, mainly the European Central Bank, are likely to step up the pace and size of rate increases as well. That will likely lead to even more market volatility.
But unless the pace of consumer price increases starts to cool off much more quickly and dramatically in the coming months, the Fed won't be able to slow the pace of rate hikes anytime soon. And forget about the expectations for the Fed being able to pause in 2023 and start signaling eventual rate cuts.
The CEOs of seven of America's largest lenders will appear before the House Committee on Financial Services on Wednesday and again in front of the Senate's banking committee on Thursday. The title of the House hearing? "Holding Megabanks Accountable: Oversight of America's Largest Consumer Facing Banks."
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.
Gerald Malloy: Vermonters Are 'Fed Up', 'Ready for Change' in NovemberVermont’s Republican U.S. Senate nominee Gerald Malloy said that “Vermonters are ready for change” after being “fed up” with the current leadership in the country.
Read more »
USD/CAD eyes weakness below 1.3300 ahead of Fed policy and Canada's InflationThe USD/CAD pair is displaying back-and-forth moves in a narrow range of 1.3270-1.3300 from the past week. The asset has sensed barricades around the
Read more »
AUD/USD approaches 0.6770 hurdle as RBA’s Kearns sounds optimistic ahead of Fed, PMIsAUD/USD picks up bids to refresh intraday high around 0.6770, consolidating the losses after dropping to the 28-month low the previous day. In doing s
Read more »
NZD/USD advances towards 0.6000, focus shifts to Fed policyThe NZD/USD pair is marching towards the psychological resistance of 0.6000 after a break above the 0.5940-0.5985 range in the early Tokyo session. Th
Read more »
Gold Price Forecast: XAU/USD stays inside bearish channel below $1,700, Fed in focusGold price (XAU/USD) remains steady at around $1,675 as Asian traders begin the key week comprising the monetary policy meeting of the Fed. The yellow
Read more »
Here is why a 0.75% Fed rate hike could be bullish for Bitcoin and altcoinsThe Federal Reserve is set to raise interest rates this week. Here’s why traders expect a 0.75% hike to trigger a crypto market rally.
Read more »