Fed Preview: Rate hikes to continue despite volatility – Danske – by MSalordFX Fed Banks
Fed cannot afford to stop tightening monetary policyemphasized that there is no trade-off between inflation and financial stability risks, and we expect Fed to deliver a similar message next week. The new Bank Term Funding Program, allowing banks to tap liquidity from the Fed against collateral valued at par, provided banks with USD11.9 billion during its first three days of use.”
“So far, short-term real rates and broader financial conditions have remained relatively stable. Our in-house 'growth tax' measure is at modestly restrictive territory, as the tightening in credit and equity components has compensated for the lower yields and mortgage rates. This suitswell as long as macro data remains strong, and for the time being, we like our call of a 25bp rate hike next week and a terminal rate at 5.00-5.25% in May.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Dollar to remain on a weaker footing if Fed pursues continued rate hikes – MUFGUS Dollar struggles to find demand. Economists at MUFG Bank expect the greenback to remain under pressure if the Federal Reserve hikes by 25 basis poi
Read more »
ECB Preview: A 50 bps rate step could have a EUR-negative effect – CommerzbankWhat will the ECB decide on today? And what will the FX market’s reaction be? We cannot be certain that market reaction on the ECB decision will be “n
Read more »
Bank Failures, Market Turmoil Fuel Bets on a Pause in Fed Interest-Rate IncreasesMore investors are anticipating the Federal Reserve’s rate increase cycle is over after fears spread of broader financial turmoil from the failure of two U.S. regional banks in the past week
Read more »
Fed rate hike campaign in question as bank stocks swoonThe Federal Reserve, which just last week was expected to accelerate its interest-rate-hike campaign in the face of persistent inflation, may be forced to hit pause and even reverse course as turbulence at Credit Suisse renews fears of a banking crisis that could cripple the U.S. economy.
Read more »
Moody’s: Fed's inflation fight remains a priority, but financial stability risks complicate rate pathMoody’s: Fed's inflation fight remains a priority, but financial stability risks complicate rate path – by anilpanchal7 RiskAversion RatingAgencies Fed Banks NewsTrading
Read more »
One year after the first rate hike, the Fed stands at policy crossroadsThe Fed in some ways is both closer and further away from its goals when it first started raising rates.
Read more »