Do you know that the world is always changing, and change is eternal. Why do I say that? I think the Fed will not change its face, but will become hawkish. Although the year-on-year increase in PPI in November was the lowest in 18 months, continuing the slowdown for many months, it still shows that there is not much room for the Fed to pause interest rate hikes next year . Moreover, the latest U.S. non-agricultural data was higher than market expectations, although the non-agricultural data has no direct relationship with the Fed’s interest rate hike to curb inflation, and Fed Chairman Powell has already hinted that the pace of future interest rate hikes will be slowed down. Slow down, because the main responsibility of the Federal Reserve Board is to stabilize prices, not the temperature of the economy, but the heat of the economy can also mean that the economy is re-expanding, and the price of economic expansion will naturally be high.
If the CPI announced tonight is higher than market expectations, although it does not mean that there will be changes in the 50-point rate hike in December, but will Federal Reserve Chairman Powell be hawkish in his speech after the interest rate meeting? Now the market generally expects that the next interest rate hike will be only 25 pips, will it bring changes? If the hawks are really released, the three major U.S. stock indexes, the Dow Jones Index. US Nasdaq Composite Index. US and the S&P 500 Index may usher in a wave of sharp declines, especially technology stocks that are sensitive to interest rates. Therefore, Nasda The gram index will be adjusted downward significantly, and everyone really needs to pay close attention to it.
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- JessieTheresa·2022-12-14certainly it is. the root cause problem persists then the rate hikes will not stop.7Report
- Tracccy·2022-12-14Need monitor closely. If sentiment goes wrong, ready to sell.7Report
- DannDann·2022-12-14Thanks for the insightful sharing. Thumbs up 👍🏻👍5Report
- CynthiaVogt·2022-12-14as far as I can tell, hawkish is always the leading power5Report
- Gloria112·2022-12-14I think the rate hike will still be 50...4Report
- JoanneSamson·2022-12-14Agreed. World always change, so does the market!2Report
- HilaryWilde·2022-12-17A 50 basis point rate hike is actually acceptable to the market.LikeReport
- BellaFaraday·2022-12-17I also don't think the FOMC has much room to raise rates.LikeReport
- wingcheong·2022-12-15Thanks for the analysis.1Report
- intheloop·2022-12-15Cheers can only happen when the sky is clear1Report
- ElvisMarner·2022-12-17The SP500 is not so likely to fall. Don't worry.LikeReport
- PandoraHaggai·2022-12-17Inflation has eased and we can be optimistic.LikeReport
- MortimerDodd·2022-12-17The CPI did not rise more than everyone expected.LikeReport
- Matrix Rev·2022-12-15Rate will continue until inflation reach targetLikeReport
- kong1509·2022-12-16OkLikeReport
- deal2deal·2022-12-16notedLikeReport
- Haileybbb·2022-12-16FLikeReport
- phyllinda·2022-12-16okLikeReport
- BOSSKC·2022-12-15djdLikeReport
- jace0777·2022-12-15OkLikeReport