Jim Caron, head of macro strategies for global fixed income at Morgan Stanley Investment Management, warns of potential volatility in the market due to potential misinterpretations of Powell’s comments. Investors will be closely monitoring Powell’s outlook on the economy, with economists forecasting a potential recession and the Fed projecting slow growth and a rise in … Read more
Could Overly Easy Credit and a Soaring Stock Market Threaten the Fed’s Fight Against Inflation? As the Federal Reserve kicks off its two-day meeting, stocks continue to rally, with the S&P 500 ending January with a gain of 6.2%. The tech sector performed even better, with a 9.2% increase in the same period. Meanwhile, interest … Read more
The Federal Reserve is predicted to increase interest rates by a quarter of a percentage point and also likely indicate that it will continue to remain cautious in its efforts to combat inflation, even as it decreases the magnitude of its hikes. On Wednesday at 2 PM ET, the Fed will announce its latest rate … Read more
The global economy is showing signs of improvement, with economists upgrading their previously gloomy outlooks. Last week, data releases revealed a slowdown in inflation and less severe downturns in activity. This prompted Barclays to raise its global growth forecast to 2.2% in 2023, an increase of 0.5 percentage points from its last estimate. China’s reopening … Read more
It’s not what the Federal Reserve does, but what it says it could do in the future that will be most crucial when the central bank ends its two-day meeting Wednesday. The Fed is expected to fire off another three-quarter point rate hike — its third in a row. It will also release quarterly forecasts … Read more
Argentina is out of options. I reported on the ongoing widespread protests occurring across the country. The majority of the nation is unemployed, and the currency is basically worthless. The people can no longer rely on the socialistic promises as the government is unable to fund its programs. Basic necessities are no longer available, and the people … Read more
The Federal Reserve is widely expected to raise interest rates by another three-quarters of a point Wednesday, and it could surprise markets by sounding even more unrelenting about tightening policy. That means the Fed would sound “hawkish,” or in a mode where it is bent on raising interest rates as much as it needs to … Read more
The pain in the mortgage market is only getting worse as higher interest rates and inflation hammer American consumers. Mortgage demand fell more than 6% last week compared with the previous week, hitting the lowest level since 2000, according to the Mortgage Bankers Association’s seasonally adjusted index. Applications for a mortgage to purchase a home … Read more
Stocks rallied strongly overnight and into the morning and started to fade as Europe closed and limped home. Higher rates were allegedly the culprit, but there seemed to be more going on than that. Not to mention that overnight has a “risk-off” tone with rates doing better while stocks are weak. The theme that corporate … Read more
One month ago, we cited from a stunning report by Nomura quant Solomon Tadesse, who calculated that the peak of the Fed Funds in the current tightening cycle would be just below 1.0% – or just 1 more rate hike away – before the Fed is forced to reverse, as the Fed has already unleashed some 2.5% … Read more
