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Investing.com – Everyone headed to one way during these moments of Wednesday’s trading, or the Fed’s tumultuous night, so there is no voice above the Federal Reserve…
As the markets are eagerly awaiting the words of the US Federal Reserve Chairman, following the interest rate decision, which everyone agrees will not go out of its way within the limits of 25 basis points.
In the meantime, the US markets gave up the gains of yesterday, Tuesday, to turn all of them to decline in the pre-trading period, while gold and the dollar agreed to join together and decline together.
Today, traders will focus on Jerome Powell’s speech regarding the Bank’s policy in the coming period and whether it will continue its policy of slowing rate hikes or is heading for a new tightening.
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futures now
By the end of trading on Tuesday, US indices rose, jumping 1.1%, while the Nasdaq and Standard & Poor’s 500 indices rose by 1.7% and 1.5%, respectively.
- Dow Jones futures fell 0.5%, or 160 points
- S&P 500 futures fell 0.45%, or 20 points.
- Futures for the Nasdaq Technology Stock Index fell 0.4%, or 50 points.
Dollars and bonds
- It fell below the 102 levels, heading for the lowest level in 8 months, down 0.15%, to reach 101.9 points.
- The 10-year yield decreased by 0.022 points, to 3.48%.
gold now
- Futures contracts for the yellow metal fell by 0.35%, or the equivalent of $ 6, to levels below $ 1940 an ounce.
- – Spot gold fell below $3 to $1925 an ounce
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Transformation is possible
Economists think Powell could turn aggressive – a term used to describe central bankers who care more about inflation than economic growth through those scenarios.
“The bond market is moving lower, and that means the Fed will have to raise more,” said Avery Shenfeld, chief economist at CIBC World Markets.
Michael Feroli, chief US economist at JPMorgan Chase, believes that continuing to use the plural may be the easiest and ugliest thing to do.
He believes the Fed will revise the wording to say that continued increases are “likely appropriate”.
It could happen again, Derek Holt, head of capital markets economics at Scotiabank, thinks. “I think Powell may repeat what he said about how the points turned back in March,” he said.
“If the Fed wants to add a worrying touch to Wednesday’s announcement, it could add forward guidance language,” said Paul Ashworth, chief economist at Capital Economics.
“This language reinforces the Fed’s economic outlook that rates will not start to fall again until 2024,” Ashworth added.
