Stocks fell sharply after the Federal Reserve said it doesn’t expect to cut rates anytime soon despite Wall Street’s hopes
A display shows Fed chairman Jerome Powell's news conference while traders work on the floor at the New York Stock Exchange in New York, Wednesday, March 22, 2023. NEW YORK — — Stocks fell sharply Wednesday after the Federal Reserve indicated the end may be near for its economy-crunching hikes to interest rates, but it also doesn’t expect to cut rates anytime soon despite Wall Street’s hopes.
The Fed also released the latest set of projections from its policy makers on where rates are heading in upcoming years. The median forecast had the federal funds rate sitting at 5.1% at the end of this year, up only a smidge from where it currently sits, in a range of 4.75% to 5%. The yield on the two-year Treasury, which tends to track expectations for the Fed, tumbled to 3.96% from 4.13% just before the projections were released. It was above 5% earlier this month.
Economic “indicators are still pretty resilient,” said Sameer Samana, senior global market strategist for Wells Fargo Investment Institute. “For markets to still speculate on rate cuts, it’s probably not going to take place this year if the Fed has its way.” Powell said such a pullback in lending could act almost like a rate hike on its own. And that was one of the reasons the Fed opted to raise by only 0.25 points Wednesday instead of 0.50 points. He also said that he sees the banking system overall as strong and sound.
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Live Fed updates: Federal Reserve will announce key rate decision Wednesday afternoonThe Federal Reserve will announce its decision on interest rates Wednesday afternoon. Markets anticipate the central bank will enact a 25 basis point rate hike.
Leer más »
Gold Price Forecast: XAU/USD grinds beyond $1,940 support, banking crisis, Federal Reserve in focusGold price (XAU/USD) struggles for clear directions around $1,980, following a pullback from the yearly high above $2,000, as markets slip into the ca
Leer más »
Five questions for the Federal Reserve as the banking crisis drags on | CNN BusinessThe Federal Reserve has a lot of balls in the air: Central bank officials are attempting to juggle their economic goals of maximum employment and price stability while maintaining financial safety and security in the midst of a banking meltdown.
Leer más »
What if every American had the same Federal Reserve perks as banks?In the aftermath of Silicon Valley Bank failing earlier this month, the Federal Reserve announced it was further increasing its support for commercial banks, creating a plan that effectively backstopped all deposits, insured and uninsured, across the U.S. financial system. Banks with accounts with the Fed enjoy a number of perks like higher interest rates and instant transfers not available to average Americans and businesses, but one proposal could change that by creating a 'public banking option,' potentially helping millions of people.
Leer más »
What if every American had the same Federal Reserve perks as banks?In the aftermath of Silicon Valley Bank failing earlier this month, the Federal Reserve announced it was further increasing its support for commercial banks, creating a plan that effectively backstopped all deposits, insured and uninsured, across the U.S. financial system. Banks with accounts with the Fed enjoy a number of perks like higher interest rates and instant transfers not available to average Americans and businesses, but one proposal could change that by creating a 'public banking option,' potentially helping millions of people.
Leer más »
Federal Reserve out of control: Americans shouldn't have to pay for Wall St-Washington mistakesAfter two years of failed policy from the Federal Reserve, and this month's shocking bank failures, it’s clear we need big change now at the Fed.
Leer más »