Slowing Down and Going Higher? Feed Meeting Recap
Casual Friday: Financial Insights
English - November 04, 2022 07:00 - 10 minutes - 7.18 MB - ★★★★★ - 1 ratingInvesting Business retirement investing planning stock bond market Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Previous Episode: A Rebound in Growth?
Next Episode: "Chernobyl Level" Nuclear Winter for Housing Industry
This week Brian discusses how the Federal Reserve (Fed) ended its two-day Federal Open Market Committee (FOMC) meeting this week and the outcome was broadly in line with market expectations. As expected, the Committee raised short-term interest rates by 0.75% to take the fed funds rate to 4.0% (upper bound).
However, during the press conference, Powell suggested he sees rates higher than expected at the last forecast round in September, indicating a terminal rate above 5%. Bond markets have priced in a terminal rate slightly above 5% by the May 2023 meeting and then marginal cuts throughout the year.
LPL Chart of the Day
Tracking # 1-05343828
