interestratehikes
The decision to raise the federal funds rate to a 4.75-5% target range comes on the heels of the collapse of Silicon Valley Bank and Signature Bank earlier this month. Some speculated about whether the central bank would pause its fight against inflation or even cut interest rates in the wake of the banking sector turmoil. Instead, the hawkish Fed pressed on with another interest rate hike – its ninth consecutive increase since March 2022. Q4 2022 hedge fund letters, conferences and more A financial advisor can help you respond to interest rate changes and other financial developments. Find a ...
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Stocks are trading higher today following a better-than-expected GDP reading for the fourth quarter, which rose at an annual rate of 2.9%. The reading came in slightly above economists’ expectations, but lower than the third quarter’s growth rate of 3.2%. Q4 2022 hedge fund letters, conferences and more Of note from the data print, consumer spending, which represents the driving force behind the US economy, grew at a 2.1% rate—steady, though slightly below the reading from the third quarter. Consumers have been cutting back on discretionary spending of late and drawing down on leftover cash fr...
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We believe the debate about continued rate hikes is over. It’s more likely the federal funds rate will breach 5% than remain under. Macroeconomic data is ultimately leading Fed policy, and we haven’t seen enough from recent data prints that cause us to believe the Fed will change course now, particularly given the trajectory of the labor market. Q4 2022 hedge fund letters, conferences and more The FOMC has been throwing out projections that show a higher terminal rate than is currently factored into market prices, and we think the markets should take the Fed at its word. We also expect hawkish...
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In his podcast addressing the markets today, Louis Navellier offered the following commentary. Alarming CPIOn Thursday, the Labor Department announced that its Consumer Price Index (CPI) rose 0.4% in September and 8.2% in the past 12 months. The core CPI, excluding food and energy, rose 0.6% in September and 6.6% in the past 12 months. Q3 2022 hedge fund letters, conferences and more Find A Qualified Financial AdvisorFinding a qualified financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor...
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As U.S. inflation remains at multi-decade highs, the Federal Reserve has been aggressive with its interest rate hikes. In fact, rates have risen more than two percentage points in just six months. Q2 2022 hedge fund letters, conferences and more Measuring Periods of Interest Rate HikesWe used the effective federal funds rate (EFFR), which measures the weighted average of the rates that banks use to lend to each other overnight. It is determined by the market but influenced by the Fed’s target range. We considered the starting point for each cycle to be the EFFR during the month when the first ...
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The latest issue of ‘The Globe‘, Eurizon’s publication describing the Company’s investment view. In this issue, a focus is dedicated to “To what extent are central bank hikes priced in?”. ScenarioThe fight against inflation undertaken by the central banks remains the main focus theme for investors. The US inflation reading for May outline another increase again, prompting the Federal Reserve to accelerate its rate hike cycle; futures are now pricing in a point of arrival for the fed funds rate at 3.5% by the spring of 2023. The ECB has also taken a hawkish stance, announcing that will start hi...
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Since most currencies take all their importance from the price of energy and oil, let’s have a look at the other side of the coin: monetary policies. So, What’s The Story With Central Banks?Oil prices were choppy on Thursday. They ended up slightly higher in a fearful environment for markets in general, after a Fed rate hike the day before and a sharp fall in the US dollar. Faced with galloping inflation – after the Federal Reserve (the Fed) announced the largest rate hike since 1994 on Wednesday – the Swiss National Bank (SNB) unexpectedly raised interest rates on Thursday, a rare occurrence ...
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Interest rates hikes are a “blunt yet dangerous weapon” in the fight against scorching hot inflation, which is hitting low-income households the hardest, warns the CEO of one of the world’s largest independent financial advisory, asset management and fintech organisations. The warning from deVere Group’s Nigel Green comes as the average global inflation rate reaches 7.4%. In the U.S., UK and Germany, inflation has risen to the highest rate for 40 years. Consumer price growth has even begun surging across Asia, a region that until recently had largely been able to avoid the broad-based global t...
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0.5% rate hikes in June and July are likely settled. However, with inflation at 8%+, calming prices with such little action is completely unrealistic. Q1 2022 hedge fund letters, conferences and more Thus, while investors await a superhero that's unlikely to arrive, the ramifications of unanchored inflation should prove troublesome over the medium term. To explain, the FOMC released the minutes from its May 3-4 monetary policy meeting on May 25. The report revealed: “Participants judged that it was important to move expeditiously to a more neutral monetary policy stance. They also noted that a...
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If the Fed normalizes its balance sheet and markets freak-out, it will be a bridge too far. But interest rate hikes won’t crash a strong US economy. Q3 2021 hedge fund letters, conferences and more Potential Interest Rate HikesWith Fed officials increasingly hawked up, the narrative shifted from a tapering of asset purchases to potential interest rate hikes. And now, with whispers of the Fed plotting to normalize its balance sheet, questions have arisen over the potential impact on the PMs. To explain, I wrote on Dec. 20: After admitting that inflation “is alarmingly high, persistent, and has ...
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