Tag

Fomc

All articles tagged with #fomc

economy2 days ago•20 min saved

Fed Minutes Reveal Consensus for One More 2026 Hike, but No Timeline

Federal Reserve officials expect one additional interest rate hike before the end of 2026 to combat persistent inflation, but the minutes from the September meeting show no consensus on timing. While 16 of 18 officials projected another increase, many viewed the recent 25-basis-point hike as insurance against sticky prices rather than a necessary tightening of policy. The Fed will decide on rates again on October 28 and December 9, with current data suggesting a pause in October.

via Yahoo Finance|

#economy #federal-reserve #fomc

central-banks21 days ago•24 min saved

Warsh’s Hawkish Hike Signals More Increases, Yet 36-Year History Suggests Stocks May Rise

Fed Chair Kevin Warsh and the FOMC raised the federal funds rate by 25 basis points to 3.75%–4.00%, the first hike since 2023, signaling more increases this year to reach the 2% inflation goal. The move initially spooked stocks, but 36 years of data show that a standard 25bp initial hike in a tightening cycle is typically followed by a higher S&P 500 about a year later, even as valuations remain rich. With AI investment and debt-financed capex, higher borrowing costs could slow growth, so investors should weigh near-term risks against the potential for a continued, albeit cautious, stock rally over the next 12 months.

via Yahoo Finance|

#central-banks #fomc #inflation

business22 days ago•5 min saved

Markets steady after Fed hike as AI rally lifts tech stocks

U.S. stock futures were little changed Friday after the Fed’s first rate hike in three years, with the Dow futures up about 41 points and S&P 500 and Nasdaq futures flat, following Thursday’s rally where the Dow rose 316 points, the S&P 500 gained 1.1%, and the Nasdaq jumped 1.7% on tech leadership; investors weigh a higher-for-longer stance against the AI growth narrative as Fed officials prepare to speak. The Bank of Japan raised rates to 1.25%, helping Asian markets higher, while week-to-date performance remains mixed: Dow around -1.5%, S&P -0.3%, Nasdaq about +0.3%.

via CNBC|

#ai #asia-markets #business

finance23 days ago•21 min saved

Hawkish Fed Could Pressure the S&P After Rate-Hike Talk

Analysts expect the Fed to hike rates at the upcoming FOMC meeting, potentially lifting the funds rate to 3.75% and signaling a hawkish stance. The article warns this could pressure the S&P 500 in the near term, driven by two opposing forces: (a) free-cash-flow and margin concerns for mega-cap tech as higher rates increase discounting and capex intensity, and (b) valuation multiple compression in software and growth names. It also notes that any shift in communication—such as ditching forward guidance or altering the dot plot—could unsettle markets further. The piece positions a disciplined, high-quality stock portfolio as an anchor amid macro uncertainty and frames the rate decision as a potential turning point for equities into late 2026.

via Yahoo Finance|

#fed-policy #finance #fomc

politics-and-government23 days ago•24 min saved

Trump slams Fed hike, says he steered Warsh toward the board’s vote

Trump criticized the Federal Reserve’s 25-basis-point rate increase, saying he told former Fed governor Kevin Warsh to vote with the board; the unanimous hike was the Fed’s first in three years and the first under Warsh. Trump has long pushed for lower rates, including posts calling for cuts, while Warsh defended Fed independence and downplayed presidential influence. Democrats tied the move to Trump-era policy criticisms.

via Yahoo Finance UK|

#economy #fed #fomc

economy24 days ago•4 min saved

Natixis: Fed could deliver a one-and-done hike if inflation cools this fall

Natixis economists expect the Fed to lift policy rates to an upper bound of 4.0% at the next FOMC, potentially the cycle’s only move if inflation moderates in the final quarter; they also anticipate the 2026 SEP showing a 4.1% end-2026 rate with wide dispersion, and expect Chair Warsh to offer limited forward guidance.

via KITCO|

#economy #fed-rate-hike #fomc

finance25 days ago•23 min saved

Markets Brace for Fed’s First Rate Hike in Years as Inflation Stays Sticky

Investors broadly expect the Federal Reserve to raise rates by 25 basis points at its September meeting—the first hike in about three years—driven by inflation remaining above the 2% target and higher energy costs. While a hike is priced in, some policymakers warn against over-tightening and a pause remains possible if data soften; all eyes will be on the dot plot and fresh inflation readings to chart the policy path ahead.

via Yahoo Finance|

#federal-reserve #finance #fomc

business25 days ago•6 min saved

Warsh Faces Crucial Fed Decision as Markets Price a Hike Amid Inflation Watch

Fed Chair Kevin Warsh faces a pivotal FOMC meeting with markets pricing a 25-basis-point hike; debate over timing and messaging mirrors disagreements about inflation’s path, with August CPI at 3.4% headline (2.4% core) keeping pressure. The vote margin, the dot plot, and Warsh’s post‑meeting remarks will reveal whether the Fed is entering a multi‑step hiking cycle or a one‑and‑done move.

via CNBC|

#business #fed #fomc

finance29 days ago•22 min saved

Fed Eyes September Hike as PCE Keeps Inflation Hot

The article argues that, despite CPI cooling, August PCE inflation remains stickier than the Fed’s 2% target, and Fed Chair Warsh—and other FOMC members—appear likely to have already decided on a rate increase for the Sept. 16 meeting, guided by the PCE gauge (the Fed’s preferred inflation measure) and Warsh’s Jackson Hole remarks signaling that price stability must move toward 2% at sufficient speed. Market dynamics and the latest data suggest a Sept. hike is increasingly priced in by investors.

via finance.yahoo.com|

#fed #finance #fomc

business1 month ago•2 min saved

Vance urges Fed to cut rates to ease housing costs

Vice President JD Vance urged the Federal Reserve to cut interest rates to make homes more affordable, arguing the administration should get help from the Fed despite Trump-aligned officials signaling possible rate hikes; the debate comes ahead of the upcoming FOMC meeting, as market odds on a move are mixed and concerns over Fed independence linger with mixed signals from Fed officials.

via CNBC|

#business #fed #fomc

finance1 month ago•13 min saved

Warsh’s Jackson Hole remarks lift odds of September Fed rate hike

Fed Chair Kevin Warsh’s Jackson Hole remarks spurred a sharp shift in markets, pushing the probability of a September rate hike from about 35% to around 60% as inflation remains above the 2% target and the Fed signals price stability as the priority; the development could raise borrowing costs and potentially cool the AI-driven rally.

via Yahoo Finance|

#finance #fomc #inflation

economy1 month ago•2 min saved

Barr Signals Readiness to Hike If Inflation Stays Elevated

Fed Governor Michael Barr said he would back a rate hike if inflation doesn’t convincingly ease toward the 2% target, but he’d wait to see clearer moderation before acting. With inflation still above target and yields rising, markets are pricing in a possible move at the next FOMC meeting in two weeks. Barr had supported a pause at the July meeting, but warned persistent inflation could necessitate decisive action; current readings show about 3.7% headline inflation (3.3% core), with CPI/PPI data due ahead.

via CNBC|

#economy #federal-reserve #fomc

economy1 month ago•2 min saved

KC Fed’s Schmid: Inflation Stubborn, Rates Not Yet Restrictive; Talks Fewer FOMC Meetings

Kansas City Fed President Jeffrey Schmid says inflation remains stubborn and sticky, but the current 3.5%-3.75% policy rate doesn’t appear restrictive and he hasn’t committed to a hike; he wants more information on demand drivers and also backs reducing FOMC meetings from eight to six, amid core PCE at 3.3%, 1.5% Q2 growth, and about 4.1% unemployment.

via CNBC|

#economy #federal-reserve #fomc

finance2 months ago•24 min saved

Warsh's 12-Word Inflation Warning Could Tighten the Fed’s Hawkish Moniker

New Fed Chair Kevin Warsh reinforced a hawkish view on inflation, declaring there is no soft inflation target, a stance that could push rates higher and weigh on the AI-driven stock rally as inflation dynamics, tariffs, and geopolitical tensions continue to shape markets.

via Yahoo Finance|

#finance #fomc #inflation

business2 months ago•3 min saved

Kashkari urges gradual Fed rate hikes to curb inflation

Minneapolis Fed President Neel Kashkari says the Fed should start slowly raising rates to cool inflation, advocating a gradual approach possibly starting in September and stressing data dependence, even as the FOMC largely held rates steady and markets price small chances of action later this year.

via CNBC|

#business #fed #fomc