NewTradingView.com – Investing and Stock News
Investing and Stock News
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Investing

Fed lifts rates by another 75 bps: ‘this path is too much’

by September 21, 2022
written by September 21, 2022

The U.S. Federal Reserve on Wednesday announced its third consecutive 75 basis points increase in interest rates to fight inflation that was still lingering near a forty-year high in August (link).

JPMorgan expert reacts to Fed

More importantly, the FOMC signalled continued hikes until the federal funds rate hits 4.6% in 2023. Reacting to the economic news on CNBC’s “Power Lunch”, David Kelly (JPMorgan) said:

I just don’t think the economy can take it. The dollar is up 20% YoY. Think about what it’ll do to our exporters. A whole swath of potential homebuyers has been knocked out of the markets by 6.0% mortgage rates.

The central bank now sees only a 0.2% increase in GDP this year. Even over the longer-term, it doesn’t expect the economic growth to top 1.8%.

S&P 500 pared its intraday gains following the Fed’s announcement and remains down roughly 10% from its recent high.

Another 75-bps hike is expected this year

In its statement, the Federal Reserve said recent indicators point to a modest growth in spending.

Terminal rate that it’s communicating suggests another 75-bps increase in either of the remaining two meetings this year – and that’s overreaching as far as Kelly is concerned.

You have fiscal drag going on. This path is too much. This economy is slowing down to a crawl. Inflation will roll over anyway. But I think the Fed is in grave danger of being more hawkish than they need to be right now.

Officials expect inflation to take until 2025 to return to their 2.0% goal. Also on Wednesday, the two-year climbed above 4.1%.

The post Fed lifts rates by another 75 bps: ‘this path is too much’ appeared first on Invezz.

0 comment
0
FacebookTwitterPinterestEmail

previous post
Morgan Stanley sees a 300% upside in this EV battery maker
next post
MarketAcross named official World Crypto Conference 2023 media partner

You may also like

US court dismisses claim Coinbase sold unregistered securities

February 2, 2023

Ray Dalio now sees cash as ‘relatively attractive’

February 2, 2023

Peter Schiff: “Disinflation is transitory”

February 2, 2023

3 main takeaways from Chair Powell

February 2, 2023

Analyst recommends ‘caution’ as Meta stock pops 20%...

February 1, 2023

Fed just ruled out rate cuts this year:...

February 1, 2023

Jim Cramer likes only one of these two...

February 1, 2023

Analyst: buy Vodafone stock despite a slight hit...

February 1, 2023

Peloton stock shot up 20% on Wednesday: find...

February 1, 2023

IOTA promotes sustainable energy consumption with EnergieKnip

February 1, 2023
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Popular Posts

  • 1

    My Trigger to Enter $VAPR

  • 2

    Multi-Millionaire Trader Explains Why You Should Start Trading With A Small Account {VIDEO}

  • 3

    Scaling Up Tips From A 24-Year Old Millionaire Trader {VIDEO}

  • 4

    Pay Attention to These Stocks

  • 5

    New ‘Hunger Winter’ Looms as Europe Prepares to Shiver

Recent Posts

  • US court dismisses claim Coinbase sold unregistered securities

    February 2, 2023
  • Ray Dalio now sees cash as ‘relatively attractive’

    February 2, 2023
  • Should the Fed Stop Tightening?

    February 2, 2023
  • Peter Schiff: “Disinflation is transitory”

    February 2, 2023
  • The FOMC: To Pause or Not to Pause?

    February 2, 2023

Categories

  • Economy (604)
  • Editor's Pick (232)
  • Investing (1,605)
  • Stock (9)
  • About Us
  • Email Whitelisting
  • Terms and Conditions
  • Privacy Policy
  • Contacts

Disclaimer: NewTradingView.com, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


Copyright © 2023 NewTradingView.com All Rights Reserved.


Back To Top
NewTradingView.com – Investing and Stock News
  • Investing
  • Stock
  • Economy
  • Editor’s Pick