The financial markets are penciling in a quarter-point increase to the benchmark federal funds rate at today’s Federal Open Market Committee (FOMC) policy meeting. Here is a snapshot of what investors expect: Looking ahead, the futures market does not see the Fed easing monetary policy until December. But there is one man urging the U.S. […]
Interest Rates
European Central Bank raises interest rates amid banking crisis, prepares to provide liquidity support to financial system
The European Central Bank raised interest rates by 50 basis points on Thursday, despite the banking crisis that has decimated global financial markets. ECB head Christine Lagarde increased the benchmark policy rate to 3.5 percent, the deposit facility rate to three percent, and the marginal lending rate to 3.75 percent. There had been speculation that […]
Federal Reserve expected to slash interest rates by 100 basis points over next 12 months to prevent banking crisis
The upcoming Federal Open Market Committee (FOMC) policy meeting will be perhaps the most important powwow of the year. The Federal Reserve is expected to raise interest rates by just 25 basis points, although Goldman Sachs is anticipating a 0% move. But what happens after the summer could be critical for the financial markets. Investors […]
Markets now expecting 50-basis-point rate hike at March FOMC meeting
What a difference a week can make. Following this week’s testimony on Capitol Hill from Federal Reserve Chair Jerome Powell, the financial market is now penciling in a larger-than-expected rate hike at this month’s Federal Open Market Committee (FOMC) policy meeting. Investors are expecting a 50-basis-point increase in the benchmark federal funds rate (FFR). Just […]
Futures market betting Federal Reserve will cut interest rates in September
The financial markets continue to fight the Fed. Despite the Federal Open Market Committee (FOMC) promising “future increases” and Federal Reserve Chair Jerome Powell vowing to keep raising interest rates until inflation has been vanquished, investors are anticipating a pause soon and then a pivot by the fall. Here is a look at the market […]