"They Should Do 100": Wall Street Debates the Fed’s Next Rate Move

Bloomberg2022-09-14

‘Markets would hate it’ versus ‘the market might rally’100-point basis move would ‘reinforce credibility’: SummersTuesday’s unexpectedly hot inflation reading virtually assured markets that the ...

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Comments

NP_YT
2022-09-15
NP_YT
Ok
Bryan_lyc
2022-09-14
Bryan_lyc
A
- Bryan_lyc:
  T
Zeruel
2022-09-14
Zeruel
Like pls
- HBONG:
  ok
- Taufiq:
  ok
K74
2022-09-14
K74
Yes
- K74:
  Acceptable
- K74:
  Till
- K74:
  Level
- K74:
  Inflation
- K74:
  Tamed
YJ Lee
2022-09-14
YJ Lee
Ok
Singman
2022-09-14
Singman
Like

Leave a comment

625

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I think it’s more sensible for the FOMC to say ‘we can keep raising rates as far as we have to but don’t have to do it at once.’”Ian Shepherdson, chief economist at Pantheon Macroeconomics:“Eleven Fed officials have made it very clear that they will not slow the pace of rate hikes until they see convincing evidence that core inflation pressure is easing on a sequential basis. These data mean that the chance of a 50bp hike next week has gone,” he said. “But the 20% chance of a 100bp hike now priced-in looks over the top.”Kate Moore, BlackRock Head of Thematic Strategy for Global Allocation:“We haven’t changed our call (75bp) but I think it’s really wise to adjust expectations around the forward path especially to the year end,” she said. “The fact that 100bps is starting to get somewhat priced into the market, it’s a bit destabilizing for the equity market.”Nisha Patel, director and portfolio manager of fixed income at Parametric:“Don’t be surprised if the Fed’s hand is forced to do 100bps. The idea that inflation had peaked has been dispelled and now the likelihood of that soft landing for the economy has only decreased. Expect long-bond yields likely to come down leading up to the September meeting as recessionary risk increases.”Seema Shah, Chief Global Strategist at Principal Global Investors:“Until the Fed can tame that beast, there is simply no room for a discussion on pivots or pauses.”Alex Chaloff, co-head of investment strategies at Bernstein Private Wealth Management:“Powell has been more careful with his communications. 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