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Powell has said the Fed plans to hold rates. We’ll likely see one last increase this month, before a flat-lining and then an eventual cut. I wouldn’t expect the
by rubyn00bie 3y ago
Powell has said the Fed plans to hold rates. We’ll likely see one last increase this month, before a flat-lining and then an eventual cut. I wouldn’t expect the cut(s) to be substantial unless demand falls off a cliff.
Powell goes with what the market is pricing in, if you want to know what that is look at “fed funds rate” odds: https://m.investing.com/central-banks/fed-rate-monitor https://m.investing.com/central-banks/fed-rate-monitor
I’ve been using that tool for over a year now and it absolutely will show what Powell will do. The odds will change as information enters the market but in general it’s spot on.
- lotsofpulp 3y agoThis is the source for that: https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html https://www.cmegroup.com/markets/interest-rates/cme-fedwatch... > I’ve been using that tool for over a year now and it absolutely will show what Powell will do. >The odds will change as information enters the market but in general it’s spot on. Sounds more like “it absolutely will show what Powell might do”. Also, Powell does not do it single handedly, there are 12 members on the Federal Open Market Committee that vote on setting the interest rate policy.
- rubyn00bie 3y agoI know there are other members of the committee it’s just a colloquialism I suppose. And yeah, I thought about saying it “will absolutely show” but my inner economist said “it depends” because there could be a surprise (even though it’d be absolute madness).