
US Federal Reserve Maintains Current Interest Rate as Fed Chair Also Indicates No Rate Cuts in March
According to Powell, its is unlikely that the Fed will be ready to cut interest rates at the March meeting.
According to Powell, its is unlikely that the Fed will be ready to cut interest rates at the March meeting.
There was a general rise in the Dow, S&P 500 and Nasdaq Composite indexes following hints that the Fed policy would favor the general market.
Stock futures are mixed after the Dow Jones Industrial Average closed its best month in more than a year.
Following the release of the CPI report, Fed-funds futures pricing data indicated that rates are likely to remain steady at the next Federal Reserve policy meeting.
Rise in the US Treasury Yields put pressure on the market resulting into bearish weekly start on Wall Street. Yields surge past 5% with Fed planning for higher-than-longer interest rates.
Market participants have been particularly attentive to any signals that the Federal Reserve may continue to raise interest rates.
Concerns about higher interest rates can lead to reduced borrowing, higher financing costs, and a potential slowdown in economic activity.
US equity market remains upbeat and optimistic ahead of the CPI data release for the month of July 2023.
While the US Fed’s Funds Rate is getting near its peak, the drivers of the economy may shift focus into reviving the stock market after winning the fight against inflation.
Notably, the Federal Reserve and European Central Bank (ECB) have noted their intentions to increase interest rates.
On Wednesday, the apex bank its increased its interest rate to between 4.25% and 4.5%, marking the highest level in 15 years.
The Dow and other major indexes all saw a positive close to begin the week as the December Fed meeting beckons.
Stock and crypto prices increased on Thursday as the US Dollar Index weakened. Some of the market’s largest assets all rose.
The current climate is impacting the Dow Jones, and the average forecast for the index in 2023 is not very optimistic.
The S&P 500 and Nasdaq Composite indexes, along with US bond yields, all incurred losses amid yesterday’s choppy session.