Market Ignorance of Fed Warnings Could Prove Costly
TL;DR
Bond traders continue to doubt the Federal Reserve's commitment to its inflation fight into 2024, despite the odds of a quarter-point increase in the federal-funds target becoming a near lock at the Fed's policy meeting on May 2-3. Markets keep pricing in rate reductions in 2023's second half, contrary to the best guesses of Fed Chairman Jerome Powell and his colleagues that the key policy rate will end the year at 5.1%, which implies no cuts after the May hike.
Topics:businessfinance#bond-traders#federal-reserve#finance#inflation-fight#interest-rates#market-predictions
- The Markets Hear, but Don’t Heed, the Fed’s Warnings. That Could Be Costly for Them. Barron's
- The Week in Business: Moderating Inflation The New York Times
- 3 Stocks to Buy Before the Fed Starts to Cut Interest Rates InvestorPlace
- Inflation Eases. Is The Fed Next? - RIA Real Investment Advice
- Markets continue to underestimate the speed of US inflation decreases Interest.co.nz
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