1Y Anniversary of Rate Hike - When Will Fed Stop and Pivot?
@Tiger_chat
1.what's the end of the rate hike cycle?
As posted at @Tiger_chat [Eye] the markets somehow figure the Fed will take that rate up to a range between 5.25%-5.5% before stopping, according to futures trading data. In fact, there are more and more sentiments from the internet news, that interest rate is not pivoting anytime soon. The recent reportings on ISM services (economic data on non-manufacturing sectors) of US showed little sign that a big rebound in February was a one-off, the figures of 55.1 was still strong compared with expected 54.5. The mood was of high resilience in US job market which is to report in coming week (IMO please) [Cool]
2. When will Fed stop rate hikes and turn to rate cut? [Bless]
This is a million-dollar question. Personally, I have no idea, and have to keep watch. There are lots of news and rumours [Call][Put] in the internet, up to one's belief.
3. How much will Fed increase in March?
As of today, 5 March 2023, the odds of a 50-basis-point (0.5-percentage-point) rate hike in March have risen to 28%, according to CME Group's Fedwatch. The chance of 25-basis point has dropped to 71%, a gradual decline is observed.
Coming this week, Fed Chairman is to give his semiannual testimony on Capitol Hill, which could impact five-day period or even more days for stock markets. Most investors will seek for direction amid a surge in Treasury yields, a hot job market that continues to stoke inflation pressures, whilst the profits of the companies are falling.
sources:
https://www.thestreet.com/markets/stocks-face-crucial-week-with-powell-testimony-jobs-data-in-focus
@LMSunshine @Splitter @Shiropi @FrankieRed
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