Fed Meeting and Market Expectations - Navigating Market Turbulence
Last Friday, there was a notable speech from the Fed indicating that the current policy rate is in restrictive territory. Essentially, this suggests that the full effects of their tightening policies might not have fully materialized yet.
The anticipation is for substantial cuts in 2024, possibly around 124 to 125 basis points. While this seems a significant move, it's crucial to monitor the economic data influencing these decisions.
Chairman Powell's statement on the restrictive levels implies a halt in further rate hikes. The CME Fed Watch Tool displays a striking discrepancy. Weeks ago, there were predictions of a 14% to 28% likelihood of a hike in December, but currently, only 1% is expecting it. The overwhelming consensus leans toward a pause next week.
The upcoming week includes crucial PMI data and the NFP release. This sets the stage for a decisive Fed FOMC meeting next week. From the information at hand, a pause appears highly probable.
This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.
Markets Brace for Powell’s Speech: Gold and Silver Slip, Oil Rallies, Currencies Hold Steady | 22nd August 2025
ATFX Market Outlook 22nd August 2025
Surprise from Flash PMI in the eurozone allowed the euro to continue its fight
Markets muted as Jackson Hole awaited for direction
EUR/USD Volatility Rises, But Fails to Drive Direction
Unimpressive crypto rebound
EBC Markets Briefing | New Zealand dollar tumbles after monetary meeting
