Fed to hike by 50 bps next week, terminal rate expected at 5.00-5.25% – Danske Bank – by MSalordFX Fed Banks
a hawkish message regarding the policy stance in 2023. They think the recent easing in financial conditions is premature, and further hikes will be needed. needs to force a moderate recession next year to avoid prolonging inflation from here. Getting demand lower requires broad financial conditions to retighten again, which likely includes a combination of more rate hikes in Q1, still elevated longer real yields and stronger USD.
“We acknowledge that our earlier call of a 75bp hike next week appears unlikely, but do not think the need to tighten monetary policy further has disappeared. We adjust our Fed call, and now expect 50bp hike next week, followed by 50bp in February and 25bp in March. Thus, we maintain our call for a terminal rate of 5.00-5.25% unchanged.”Information on these pages contains forward-looking statements that involve risks and uncertainties.
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.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ECB Preview: A 50bp hike with a hawkish twist – Danske BankNext week, the European Central Bank will have its monetary policy meeting. Analysts at Danske Bank see the central bank raising rates by 50 basis poi
Read more »
25 Totally Awesome Gifts For the 9-Year-Old in Your LifeTake your pick, parents!
Read more »
Woman gets 25 years for Gage Park robbery in which boyfriend killed 6A woman who watched her former boyfriend kill six members of his family, including two young boys, at their Chicago home then helped him steal their property was sentenced Tuesday to 25 years in prison.
Read more »
Mobile man sentenced to 25 years in prison on child porn chargesA Mobile man received a 25-year prison sentence Monday after pleading guilty in Mobile County Circuit Court to nine counts of possession of obscene matter and one count of dissemination of obscene matter.
Read more »
Texas teens get 25 years each for killing friend during 2021 fightTwo Texas teenagers were sentenced to 25 years in prison after admitting to killing a friend during a fight, authorities said.
Read more »