The majority of economists polled by Reuters predict that the U.S. Federal Reserve will not raise interest rates again, and they expect the central bank to wait until at least the end of March before cutting them, as the probability of a recession within a year falls to its lowest level since September 2022.
Global stock markets and Wall Street futures are rising as traders await signals on interest rate plans from the Federal Reserve conference, with investors hoping that the Fed officials will signal an end to interest rate hikes despite concerns about inflation not being fully under control yet.
U.S. stock index futures rise as Treasury yields decline, with tech stocks leading the rally ahead of earnings reports and Federal Reserve Chair Jerome Powell's upcoming speech.
A stock market rally is expected in the near term, as recent market corrections have created potential opportunities for investors to increase equity exposure, despite the possibility of a 5-10% correction still lingering. Additionally, analysis suggests that sectors such as Utilities, Staples, Real Estate, Financials, and Bonds, which have underperformed in 2023, could present decent upside potential in 2024, particularly if there is a Federal Reserve rate-cutting cycle.
Wall Street slightly increased ahead of Federal Reserve Chair Jerome Powell's upcoming speech, with futures for the Dow and S&P 500 rising 0.2%; traders hope Powell will indicate that the Fed is done raising interest rates and may cut them next year.
The tone of the Jackson Hole economic symposium in 2023 is expected to focus on how long rates will stay high rather than how far they may rise, as the bond market prices in a higher for longer policy path from the Fed, potentially delivering a blow to the market's expectation of a more accommodative Fed.
The Federal Reserve raised interest rates to their highest level in 22 years, but experts expect the market to react less dramatically than in the past.
Federal Reserve Chair Jerome Powell is expected to signal in his upcoming speech that the Fed plans to maintain its benchmark interest rate at a peak level for a longer period than anticipated, suggesting that any rate cuts are unlikely until well into next year, as the central bank aims to further slow borrowing and spending to reduce inflation.
Wharton professor Jeremy Siegel predicts that the stock market will continue to rise into the end of the year, with the S&P 500 potentially surging 25% and gaining an additional 9% if the Federal Reserve acknowledges falling inflation and refrains from further interest rate hikes.
The Federal Reserve meeting in September may hold the key to the end of the tightening cycle, as markets anticipate a rate hike in November, aligning with the Fed's thinking on its peak rate. However, disagreement among Fed policymakers regarding the strength of the economy and inflation raises questions about the clarity and certainty of the Fed's guidance. Market skeptics remain uncertain about the possibility of a "soft landing," with sustained economic expansion following a period of tightening.
Stock futures rise as recent economic data sparks hopes that the Federal Reserve is approaching the end of its rates-hiking cycle.
U.S. stock futures decline as bond yields rise despite weak economic news from China and Europe.
Renewed concern over the Federal Reserve's interest rate policy and the potential for another hike this year has led to lower S&P 500 futures and Nasdaq 100 futures, while Dow Jones Industrial Average futures are slightly up.
Stock futures decline as investors express concerns about the Federal Reserve's potential to maintain a restrictive monetary policy due to rising inflation.
The yield on the 10-year Treasury note is predicted to decrease significantly for the remainder of this year and in 2024, as economists anticipate the Federal Reserve to loosen its monetary policy and inflation to fall.
Bond traders are anticipating that the Federal Reserve will continue with interest-rate hikes, and next week's consumer-price index report will provide further insight on how much more tightening may be required to control inflation.
Summary: Stock futures are trading higher as investors anticipate the release of U.S. inflation data and consider its impact on monetary policy.
The Wall Street Journal reports a notable shift in the stance of Federal Reserve officials regarding interest rates, with some officials now seeing risks as more balanced due to easing inflation and a less overheated labor market, which could impact the timing of future rate hikes. In other news, consumer credit growth slows in July, China and Japan reduce holdings of U.S. Treasury securities to record lows, and Russia's annual inflation rate reached 5.2% in August 2023.
The Federal Reserve is expected to cut interest rates by about one percentage point next year as economic growth slows and unemployment rises, according to chief economists at major North American banks.
The Federal Reserve is unlikely to panic over the recent surge in consumer prices, driven by a rise in fuel costs, as it considers further interest rate hikes, but if the rate hikes weaken the job market it could have negative consequences for consumers and President Biden ahead of the 2024 election.
The stock market is currently stagnant and the key question is when the Federal Reserve will start cutting interest rates, as the market struggles when the Fed tightens monetary policy.
Following the European Central Bank's record high interest rate hike to 4%, there is speculation about how long rates will remain at this level, with analysts predicting a 12-month pause before any cuts are made, while also considering the impact of rising oil prices on inflation expectations in Europe and the US. The Federal Reserve is expected to hold rates steady in September, but there are divided opinions on whether another hike will be delivered this year, with markets anticipating rate cuts in 2024. Similarly, the Bank of England is anticipated to make one final hike in September as it assesses inflation and economic indicators.
High mortgage rates have frozen the US housing market, but experts predict that the Federal Reserve may cut interest rates in the next 12 to 18 months, potentially leading to a decline in mortgage rates.
The U.S. Federal Reserve has revealed accumulated losses of $100 billion in 2023, a situation that is expected to worsen for the Fed, but it may be a blessing in disguise for risk assets like Bitcoin. The losses are a result of interest payments on the Fed's debt surpassing its earnings, leading to concerns about the impact on interest rates and the demand for scarce assets like BTC.
The Federal Reserve faces the challenge of bringing down inflation to its target of 2 percent, with differing opinions on whether they will continue to raise interest rates or pause due to weakening economic indicators such as drops in mortgage rates and auto sales.
The Federal Reserve's continued message of higher interest rates is expected to impact Treasury yields and the U.S. dollar, with the 10-year Treasury yield predicted to experience a slight increase and the U.S. dollar expected to edge higher.
The Federal Reserve's upcoming meeting will focus on the central bank's expectations for key indicators such as interest rates, GDP, inflation, and unemployment, while many economists believe that the Fed may signal a pause in its rate-hiking cycle but maintain the possibility of future rate increases.
Wall Street fears that the Federal Reserve will push out the timing for rate cuts next year, sparking concerns of a hawkish pause and increasing selling pressure, despite a trend of rapid disinflation and the potential for a higher neutral interest rate.
US stock futures rise as investors await Fed decision on rates; US debt rises to $33 trillion as government shutdown looms; Federal Reserve expected to pause rate hikes; Impact of government shutdown, autoworkers strike, and rising oil prices on the economy; Biden reshapes the Federal Reserve.
The US Federal Reserve holds interest rates steady at 5.25% to 5.50%, projects higher rates for next year, and expects stronger economic growth, causing a slight drop in Bitcoin's price.
The Federal Reserve plans to continue reducing its holdings of Treasury securities, agency debt, and agency mortgage-backed securities, which will have an impact on stock markets, while keeping interest rates at current levels due to the lagged effect of monetary policy and the need for the commercial real estate market to adjust; however, there are concerns about the impact of tighter credit conditions on hiring and an increase in strikes, particularly in the auto industry. Elevated interest rates will pressure dividend-income investors and affect Real Estate Investment Trusts (REITs), while the reduction of securities by the Fed may lead to a decline in stock indices. The Fed is considering raising rates in November or December but is uncertain about how long rates will remain at current levels. The core personal consumption expenditure is falling, and rising energy prices are increasing overall inflation, but the Fed is excluding energy prices due to volatility and suggests that high oil prices may impact its stance in the future. Stock market traders have a short-term time frame and may find instruments like Instacart (CART) and Arm (ARM) more suitable, while long-term investors should prepare for the market adjusting to the Fed's restrictive policy by moving capital gains into money market funds, considering energy stocks at lower prices, and being cautious of high-flying technology stocks and IPOs.
Dow Jones futures, as well as S&P 500 futures and Nasdaq futures, dropped after the Federal Reserve meeting, with the stock market retreating and breaking below critical levels due to the Fed's decision to stick with forecasts for one more rate hike this year and hinted that rates would stay higher for longer.
The Federal Reserve will continue raising interest rates until inflation decreases, even if it means more people losing their jobs, according to CNBC's Jim Cramer.
The U.S. Federal Reserve kept interest rates steady but left room for potential rate hikes, as they see progress in fighting inflation and aim to bring it down to the target level of 2 percent; however, officials projected a higher growth rate of 2.1 percent for this year and suggested that core inflation will hit 3.7 percent this year before falling in 2024 and reaching the target range by 2026.
The Federal Reserve has left interest rates unchanged but indicated the possibility of one more rate hike, causing U.S. markets to slump and Treasury yields to rise, while European markets saw gains; Instacart shares sank, Klaviyo shares jumped, and Arm shares continued to slide; UK inflation for August was lower than expected, throwing the Bank of England's next move into question; Goldman Sachs has raised its 12-month oil price forecast to $100 per barrel.
The Federal Reserve has paused raising interest rates and projects that the US will not experience a recession until at least 2027, citing improvement in the economy and a "very smooth landing," though there are still potential risks such as surging oil prices, an auto worker strike, and the threat of a government shutdown.
Stock futures traded lower as the Federal Reserve held interest rates steady but hinted at the possibility of a rate hike later this year.
Markets on Wall Street are expected to open with losses after the Federal Reserve suggests it may not cut interest rates next year by as much as previously thought, leading to a decline in futures for the S&P 500 and Dow Jones Industrial Average; uncertainty surrounding inflationary indicators and high rates is a major concern for traders moving forward.
The Federal Reserve's decision to maintain interest rates and raise its long-term forecast for the Federal Funds Rate surprised many market participants, causing a slight pullback in the stock and cryptocurrency markets while highlighting the need for investors to focus on the actual health and viability of companies and the utility of the crypto ecosystem. Additionally, the article speculates on the impact of the U.S. Securities and Exchange Commission's ruling on Bitcoin spot ETF applications and the potential for cryptocurrency to become a mainstream alternative investment.
BlackRock's Rick Rieder predicts that the Federal Reserve will cut interest rates next year due to a slowing economy, following the Fed's recent pause on rate hikes.
The Federal Reserve's decision to hold interest rates at their highest in over 20 years is posing a "nightmare" scenario for bitcoin and crypto companies, potentially leading to price chaos and further decline in the bitcoin price.
