Focus Is On The Fed’s Decision And Powell’s Press Conference

The Federal Reserve is widely expected to raise interest rates by 25 basis points, while signaling it will remain focused on fighting inflation even as it slows rates. The Federal Reserve will announce its interest rate decision on Wednesday evening, while Fed President Jerome Powell will hold a press conference 30 minutes later. The expected 25 basis point increase follows a 50 basis point increase in December and would be the smallest increase since March 2022, when the Fed began raising rates. Wednesday’s interest rate hike by the Federal Reserve would be the eighth since last March. This would raise the funds’ target rate from .50 percent to .75 percent. That’s just 50 basis points away from the Fed’s estimated final rate range of 5 percent to 5.25 percent. And after several big rate hikes through 2022 aimed at curbing accelerating inflation, it looks like 25 basis points. However, the focus will be on Fed Chairman Jerome Powell’s press conference, as many economists are trying to gauge how long the Fed will last. Economists say Mr. Powell may have a hard time containing the financial market’s reaction. Markets rallied as many market participants appear to believe the Federal Reserve will achieve a so-called “soft landing” for the economy as they curb high inflation. “How is he telling people to calm down, relax and not get so excited that we’re getting close to the end of a rate hike?” According to Peter Boockvar, chief investment officer at Bleakley Financial Group. “He’ll do that by continuing to say the Fed will stay tight for a while. Just because he wants to do that doesn’t mean it’s a quick bridge to easing.” “I think he demands financial conditions. I think the market expects it. I think people realize how much credit spreads have moved, how much the stock market has moved, how much tech stocks have moved. It’s been an extraordinary month,” says Rick Rieder, head of global fixed income investments at BlackRock. Additionally, the European Central Bank and the Bank of England will hold their monetary policy meetings on Thursday, and both will raise interest rates by 50. The euro was slightly up at 0.0 %, or 1, against the US dollar at 0866, while the British pound fell about 0.05% to trade near 1.231 , up 0.05%. Dow Jones Industrial Average futures lost about 70 points , while S&P 500 futures and Nasdaq Composite futures also fell by about 0.2 % and 0.35% respectively. The move of , follows the stock market’s strong performance in January, with the Nasdaq Composite closing one of its best Januarys in 22 years. Oil prices rose early on Wednesday as inflation showed signs of easing in the United States, easing concerns that the United States could be headed for recession. Brent crude futures rose about 32 cents to trade near $85.78 a barrel by 0 07 GMT, while U.S. West Texas Intermediate (WTI) crude futures were up about 2 cents at $79.29 a barrel. Both oil contracts rose in the second session after adding about 1% in the previous session. “During the company’s positive reporting period, the mood changed. “Signs of cooling inflation have also increased expectations that the Federal Reserve will be able to hold off on interest rate hikes,” ANZ commodity analysts said in a note. Softer interest rate expectations helped push the dollar rate lower, which in turn supported easing. oil prices. The dollar tends to make goods cheaper for holders of other currencies. The focus is also on Wednesday’s Nafta. Meeting of the Organization of the Exporting Countries and its allies, including Russia, OPEC, where it is expected to maintain its current production without changing the policy decided in November.

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