Many believe it may end up moving too aggressively after moderating its stance a month ago.
The Federal Reserve’s pledge to redouble its inflation-fighting efforts is spooking some investors, who believe it may end up moving too aggressively after moderating its stance a month ago.
Friday’s U.S. employment and next week’s inflation report would be key factors in determining whether policymakers would return to jumbo-sized rate increases after scaling back to a quarter-percentage-point hike last month, he said. Worries of Fed overtightening are showing up in the ICE BofA MOVE Index, a measure of expected volatility in U.S. Treasuries that has shot back from a 10-month low and now stands near its highest level since December.
While the Fed’s words and actions are always closely followed by investors, market participants have been particularly focused on the central bank’s response to rising inflation pressures in the economy since the COVID-19 slowdown. Some have criticized it for being too slow in shifting its attention from fighting the pandemic economic shock to controlling prices.
Another risk, Gayeski said, is that a run of softer data could prematurely fan risk appetite by convincing investors that inflation was once again on the downswing.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
DoubleLine's Gundlach: Gold at $1,800 is a buy even though the Fed is
Lire la suite »
Nurse, Fed Up With Someone Stealing Their Food, Calls The Police When HR Does NothingSome food seems to have magical properties when it’s brought to work—it often disappears into thin air. Such wonders are far from miraculous to those who are then left lunchless.
Lire la suite »
In global rate race, few central banks ever lap the FedPeers have been unwilling or unable to match the full extent of U.S. tightening cycles in the past
Lire la suite »
Video: Fed chief opens door to higher, possibly faster rate hikes in U.S.The U.S. Federal Reserve will likely need to raise interest rates more than expected in response to recent strong data and is prepared to move in larger steps if the 'totality' of incoming information suggests tougher measures are needed to control inflation, Fed Chair Jerome Powell told U.S. lawmakers on March 7.
Lire la suite »
Hawkish Fed comments result in sideways price action for the crypto marketBitcoin struggles to hold $22,000 amid a pullback in activity across the crypto market as traders take stock of hawkish comments from the Fed.
Lire la suite »
U.S. stocks retreat in anticipation of higher Fed rates - BNN BloombergGlobal stocks retreated on Thursday, and Treasury yields held near the key four per cent mark as investors priced the likelihood of higher interest rates and a looming U.S. recession.
Lire la suite »