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Investing.com – Important US data has now been released regarding clarity about the upcoming period regarding raising interest rates, especially after a week full of Fed statements that manipulated the markets up and down.
Now the ISM’s non-manufacturing PMI data is out of line with experts’ expectations, stating that the economy is still healthy and not contracting as the Fed wanted. To cut its losses now, as it prepares for a decline after losing a large part of its gains. While stocks consolidated their gains after the release of the data.
It scored 55.1 points, while experts expected it to score 54.5 points, down from 55.2 points from the previous January.
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A look at the Fed’s statements over the past days
The Fed has more work to do
“Inflation remains very high, and recent data — including several strong labor market indicators, as well as faster-than-expected retail sales and producer price inflation — all reinforce my view that we have More work to do, to bring inflation down to the 2% target.
Inflation will return to target
Fed Governor Philip Jefferson said Monday that he “has no doubt that inflation will quickly return to the Fed’s 2% target.”
“The job market is very strong now with high demand,” Jefferson said. It is important to return to the inflation target of 2% to allow for sustainable economic gains.
He continued: The Fed has a strong desire to do what it takes to bring down inflation. “It will not be easy to get inflation back to 2%, and it may take some time,” he said.
Upgrade by 50 points
Fed member Neel Kashkari opened the door at the next Fed meeting to raise .
Kashkari considered that the most threatening thing is that raising interest rates to current levels (4.75%) did not succeed in reducing inflation in the services sector sufficiently.
Kashkari emphasized that the Fed wants to avoid an economic recession, but its most important priority goes to eliminating inflation and its decline.
Nik Kashkari said he would be ready to listen to suggestions for a 50 basis point rate hike at the next Fed meeting along with only 25 basis points.
Fortitude is the right course
Atlanta President Rafael Bostick said Thursday that the impact of higher rates on the economy may only start to become evident this spring, an argument that calls for the Federal Reserve to stick with raising interest rates.
He continued, “I still think a lot that stability will be the appropriate course of action. The cumulative effect of increasing the interest rate should continue through the spring … Going at a measured pace reduces the possibility of harming the economy.”
Bostick said the Fed may be close to a breakpoint in the rate increases that raised the target federal funds rate from near zero a year ago to a “restricted” level between 4.5% and 4.75% as of February.
He added, “Another half percentage point of interest rate increases has been determined as likely need is, but that depends on upcoming data on the economy.”
Lucid collaboration
The telecommunications company TADAWUL: 7010 announced the signing of an agreement with the famous American company Lucid Motors (NASDAQ:) Lucid Motors, a leader in the electric car sector, in order to provide a communication system in its vehicles and achieve easy communication for Lucid customers, according to the Saudi Press Agency.
This partnership will allow Lucid to provide better connectivity services that keep pace with advanced communication technologies and in-car communications, thus enhancing the digital driving experience.
Stock now
The industrial index rose 72.76 points, or 0.22 percent, to 33,076.33 points.
The index rose 16.67 points, or 0.42 percent, to 3,998.02 points.
The Nasdaq Composite Index rose 81.67 points, or 0.74 percent, to 11,544.65 points.
Gold and the dollar now
Gold trimmed its gains immediately after the release of data supporting the dollar, rising in spot transactions by 0.3 percent to $1,842.57 an ounce. After it was up 0.7% before the data.
US gold futures rose 0.4% to $1,847.50, after gains of 0.75% before the data was released.
While the dollar pared its losses, which amounted to 0.25% before the release of the data, and is now declining by 0.1%, to 104.88.
