© Reuters.
Investing.com – Contrary-to-expects U.S. Consumer Confidence data released moments ago, reinforcing the notion that the economy is still a long way from recession, fueling expectations of a sharp hike at its next meeting .
The data (November) revealed a record of 102.2 points against expectations for record levels of 100 points, while the earlier reading for October came in at 102.2 points.
The latest data comes after statements by US Reserve Bank bosses and officials regarding the continuation of the Fed’s aggressive policy for the bank to meet its inflation targets.
Strength and confidence
And a US Federal Reserve member, James Bullard, said on Monday that the bank has several options to tighten monetary policy, stressing that the number of points targeted to raise interest has not yet been determined.
New York Fed Chairman John Williams said he believes the Fed will need to raise interest rates high enough to put pressure on inflation and keep them there for the next year.
Interestingly, the statements from Fed officials come as markets have started pricing interest rates by 50 basis points at their next meeting, with expectations that a slowdown in the tightening cycle will begin. monetary that has exhausted most of the assets .
Don’t underestimate us
Bullard indicated that markets are underpricing the upcoming Fed meeting, which may be more aggressive than they think.
Fed member Borlad added that the bank will continue to ramp up over the next year and the final interest rate is expected to be between 5% and 7%.
And the Fed member went on to say that inflation is still high and the bank is still working to reduce it, adding that high interest rates could continue into 2024 and not next year.
interest rates
Next on investors’ radar is Federal Reserve Chairman Jerome Powell’s speech on the US economy and job market on Wednesday; For clues about monetary policy expectations.
Most market participants are pricing in a 50 basis point hike at the December Fed meeting after the latest policy meeting minutes indicated a slowing pace of hikes.
markets now
All indices managed to erase their losses at the start of trading and move into the green zone, despite the positive data giving the Fed impetus to continue its tight policy.
However, despite the increases taking place at the moment, volatility continues to dominate market trading, a feature that has become predominant in trading in recent sessions.
Wall Street
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It rose marginally within 10 points, after falling by 0.2% in the first few minutes.
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The Standard & Poor’s index rose by 0.12%, after falling by about 0.3% in the first few minutes.
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While the Nasdaq tech stock index rose 0.1% after falling 0.2% in the first few minutes.
It arises
Gold extended its gains, as futures contracts jumped to $1,755, up $15 an ounce, up 0.85%.
Spot contracts surged $16 to levels near $1,757 an ounce, up 0.9% during those trading moments on Tuesday.
The dollar is going down
The main downside fell in the range of 0.2%, to levels near 106.5 points, during these trading moments today, Tuesday.
On the other hand, the 10-year yield entered the green zone, up 0.032 points to reach 3.71%.
