Fed likely to hike 25 bps next week – MNI


Share:

Citing former senior Bank for International Settlements official and ex-New York Fed research director Stephen Cecchetti, MNI reported on Wednesday, “the Federal Reserve will likely approve a quarter-point interest rate increase next week as focus shifts from strong economic data to restoring confidence in the banking system.”

Additional comments

"I would try to get that message out as broadly, clearly and quickly as possible, and then I would raise interest rates. Does that mean you're probably going to go 25 now instead of 50 and then postpone further increases? Probably yes.”

Pausing would be a "very bad signal. It would be read as you're really worried about the financial stability consequences of further interest rate increases and you're willing to compromise your inflation objective."

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD closes in on 1.0800 on broad USD weakness

EUR/USD closes in on 1.0800 on broad USD weakness

EUR/USD preserves its bullish momentum and continues to push higher toward 1.0800 on Tuesday. The positive shift witnessed in risk sentiment, as reflected by the positive opening in Wall Street, doesn't allow the US Dollar to find demand and helps the pair keep its footing. 

EUR/USD News

GBP/USD stays in red around mid-1.2100s

GBP/USD stays in red around mid-1.2100s

GBP/USD continues to trade in negative territory at around 1.2250 on Tuesday despite the broad-based US Dollar weakness. Investors seem to be refraining from betting on Pound Sterling strength ahead of the Fed's and BOE's policy announcements.

GBP/USD News

Gold falls toward $1,950 as US yields push higher

Gold falls toward $1,950 as US yields push higher

Gold price extended its daily slide and declined below $1,960. The benchmark 10-year US Treasury bond yield is up nearly 3% on the day above 3.5% on improving risk mood, forcing XAU/USD to stay under bearish pressure ahead of Fed's policy decisions on Wednesday.

Gold News

If Fed’s money printer goes brrr… will Bitcoin price hit $1 million?

If Fed’s money printer goes brrr… will Bitcoin price hit $1 million?

Bitcoin has taken front and center stage after it restarted its 2023 rally in March. This resurgence of buying pressure pushed BTC to nine-month highs.

Read more

FX thoughts for the week

FX thoughts for the week

Do central banks face a conflict between their inflation mandate and financial stability? The markets are still grappling with this question and confidence in the financial sector has not fully recovered. For now, central banks are responding with a conditional no.

Read more

Forex MAJORS

Cryptocurrencies

Signatures