Now: FED is the Main Attraction
Lately almost every market mover’s news is coming from the central bank’s announcement. Amid the high inflation rate all over the world, people are focusing on the central bank stand on how to deal with the overheating economy without plunge the market into panic mode.
Last night Fed decided to hike the rate by 75-basis points which is the highest since 1994 but at the same time denied the possibility of 100-basis point rate hike. According to Fed Chair Powell, the current pace is on the right track and in the next meeting the rate should be around 50 to 75-basis points.
During the meeting, the US policymakers also revised the inflation indicator PCE to 5.2% for this year from the 4.3% previously forecasted. The inflation is forecasted to be slowly drop to 2.6% in 2023 and 2.2% in 2024. The growth rate also been revised to 1.7% from 2.8% previously.
16 June 2022