Summary:
Investors believe the FOMC will maintain interest rates this month. They anticipate a 100 bps cut in 2024, raising doubts about its likelihood.
The Fed's Dec meeting
14/12/2023 (Thu) 03:00
Previous (Aug): 5.50% | Forecast: 5.50%
Investors are convinced that the FOMC will once again opt not to raise interest rates at its upcoming meeting this month. They have priced in rate cuts of 100 bps for 2024, which is questionable.
Powell confronts a mixed economic picture. While the labour market is resilient and consumer spending is solid, there are signs of slower growth and, in turn, lower inflation.
He is expected to reiterate that it is still premature to discuss policy shift as inflation remains well above the Fed’s target of 2%. But investors’ view could prove hard to alter at this point.
The South African rand erased early gains on Thursday, extending December's weakness, but could rally, according to the options market.
2025-01-02
On October 2, HK stocks surged 18% after China announced policy easing in a rare briefing by central bank governor Pan Gongsheng.
2024-12-31
The Turkish lira slumped nearly 20% in 2024, while global central banks rushed to defend currencies after the Fed signaled slower rate cuts.
2024-12-30
