Interest Rates

  • Investors Predict End of Federal Reserve Interest Rate Hike Cycle

    According to a recent article by Nick Timiraos, the “shadow official” and mouthpiece of the Federal Reserve, more investors are currently anticipating that the Federal Reserve’s interest rate hike cycle may have ended due to the broader financial turmoil caused by the collapse of two regional banks in the United States in the past week. Michael, chief US analyst at JPMorgan Chase, said that suspending interest rate hikes now would send a false signal about the seriousness of the Fed’s efforts to address inflation issues, which could also exacerbate concerns that the Fed is hesitant to raise interest rates. On Wednesday, the market believed that the probability of the Federal Reserve reducing interest rates below 4% by the end of the year was close to 70%. Federal Reserve officials say their policies are mainly implemented by tightening the financial environment, such as rising borrowing costs, falling stock prices, and a stronger dollar. “But the effects of these policies will not…

    03/16/2023
    75
  • European Central Bank Raises Interest Rates to Fight Inflation

    It is reported that the European Central Bank has raised all three major interest rates by 50 basis points, in line with market expectations, indicating that the European Central Bank’s determination to combat inflation remains firm. The European Central Bank announced a 50 basis point interest rate hike Analysis based on this information:The European Central Bank (ECB) recently announced that it has raised all three major interest rates by 50 basis points. This move is in line with market expectations and aims to combat inflation, which has been a growing concern in the Eurozone. This decision indicates that the ECB remains firm in its determination to fight rising prices and maintain price stability in the region. Interest rates are one of the primary tools that central banks use to control inflation. By raising interest rates, the ECB is essentially making borrowing more expensive, which can reduce consumer spending and slow down the economy. However, this can also lead to higher…

    03/16/2023
    68
  • Federal Reserve Likely to Raise Interest Rates in March

    According to CME’s “Federal Reserve observation”, the probability of the Federal Reserve keeping interest rates unchanged in March is 20.3%, the probability of raising interest rates by 25 basis points to the range of 4.75% – 5.00% is 79.7%, and the probability of raising interest rates by 50 basis points to the range of 5.00% – 5.25% continues to be 0%; The probability of a cumulative interest rate increase of 50 basis points in May will fall to 0%. The probability that the Federal Reserve will keep the interest rate unchanged in March fell to 20.3% Analysis based on this information:The recent report by CME’s “Federal Reserve observation” indicates that the likelihood of the Federal Reserve hiking interest rates is high, with a 79.7% probability of raising rates by 25 basis points in March. This is a signal to the market that the Fed is confident about the strength of the US economy and believes that inflation is under control….

    03/15/2023
    77
  • Interest Rate Swap Pricing to Peak in March

    It is reported that the current pricing of the Federal Reserve’s interest rate swap will peak in March, leaving only 10 basis points left on the current interest rate increase bet. The Federal Reserve’s interest rate swap shows that the probability of the Federal Reserve raising interest rates in March is less than 50%. The Federal Reserve’s interest rate swap shows that the probability of the Federal Reserve raising interest rates in March is less than 50% Analysis based on this information:The message above suggests that the current pricing of the Federal Reserve’s interest rate swap will peak in March, leaving only 10 basis points left on the current interest rate increase bet. Essentially, this means that the market participants are forecasting that the pricing of the interest rate swap will remain relatively stable until March, after which they expect a significant rise in interest rates. The Federal Reserve’s interest rate swap is a financial instrument used by investors to…

    03/15/2023
    74
  • Federal Reserve to slash interest rates by year-end

    It is reported that the Federal Reserve will cut interest rates by 100 basis points by December. (Jin Shi) The Federal Reserve will cut interest rates by 100 basis points by December Analysis based on this information:The Federal Reserve has been closely monitoring the economic impacts of COVID-19 and has been taking measures to support the financial markets. With the onset of the pandemic, businesses around the world started to experience disruptions, and the United States is no different. The unprecedented scale of the outbreak has forced the Federal Reserve to think outside the box to cushion the impacts of the virus on the economy. One such measure is to lower interest rates, and the Fed is considering a 100-basis point cut by December. Interest rates control the cost of borrowing for businesses and individuals, and low rates promote borrowing, hence spurring economic growth. The Fed rate cuts are usually meant to stabilize economic conditions, and this time is no…

    03/15/2023
    65
  • Federal Reserve’s Interest Rate Decision: Interpretation of CME’s Observation

    According to CME’s “Federal Reserve observation”, the probability of the Federal Reserve keeping interest rates unchanged in March is 32.1%, the probability of raising interest rates by 25 basis points to the range of 4.75% – 5.00% is 67.9%, and the probability of raising interest rates by 50 basis points to the range of 5.00% – 5.25% has dropped to 0%; The probability of a cumulative interest rate increase of 50 basis points by May is 55.2%, the probability of a cumulative interest rate increase of 75 basis points to 5.25% – 5.50% is 24.2%, and the probability of a cumulative interest rate increase of 100 basis points to 5.50% – 5.75% is 0%. The probability that the Federal Reserve will keep the interest rate unchanged in March is 32.1% Analysis based on this information:CME’s observation indicates that there is a high probability of the Federal Reserve raising interest rates by 25 basis points to the range of 4.75% –…

    03/14/2023
    64
  • The Federal Reserve Likely to Raise Interest Rates in March

    It is reported that the rate swap of the Federal Reserve shows that the probability of the Federal Reserve raising interest rates by 25 basis points in March is stable at about 80%. The Federal Reserve’s interest rate swap shows that the probability of the Federal Reserve raising interest rates by 25 basis points in March is stable at about 80% Analysis based on this information:The Federal Reserve’s economic policy decisions are important indicators of the health of the American economy. Interest rates affect borrowing behavior, investment activity, and consumer spending, all of which are crucial dynamics for a sustained economic growth. The latest report on the rate swap of the Federal Reserve suggests that the probability of the central bank raising interest rates in March is stable at about 80%. This message can be interpreted in several ways, shedding light on the Fed’s priorities and the economic outlook for the near future. One way to interpret the message is…

    03/14/2023
    83
  • Nomura Predicts a 25-basis points interest rate cut by the Federal Reserve

    On March 14, Nomura predicted that the Federal Reserve would cut interest rates by 25 basis points in March and suspend quantitative tightening. (Cailian Press) Nomura expects the Federal Reserve to cut interest rates by 25 basis points in March and suspend quantitative tightening Analysis based on this information:Nomura, a leading financial services group based in Japan, has recently predicted that the Federal Reserve will cut interest rates by 25 basis points in March and suspend the quantitative tightening policy. This announcement was made on March 14 and was subsequently covered by the news agency, Cailian Press. The prediction by Nomura, which is a significant player in the global financial market, has led to widespread speculation and commentary from experts in the field. The move is seen as a response by the Federal Reserve to the ongoing global economic slowdown, which has been further exacerbated by the ongoing COVID-19 outbreak. The Federal Reserve’s decision to lower interest rates and suspend…

    03/14/2023
    81
  • Former US Treasury Secretary Summers Advocates for Incremental Interest Rate Hikes

    It is reported that former US Treasury Secretary Summers said that considering the importance of fighting inflation, it is still reasonable for the Federal Reserve to raise interest rates by 25 basis points next week. “In my opinion, if the Federal Reserve no longer focuses on curbing inflation and making it fall towards the target range of 2%, it will make a serious mistake,” Samos said in a television interview. “I expect the Federal Reserve to raise interest rates by 25 basis points next week is still appropriate, but the situation will always change.” Summers said: “I will not rule out any possibility now,” but it is “unwise” to make a decision to raise interest rates by 50 basis points based on the situation before Monday. He said that the focus should be on Tuesday’s US CPI data and the development of the financial market in the next week. Summers: It is still appropriate for the Federal Reserve to raise…

    03/14/2023
    78
  • The Impact of Interest Rate Increase on Financial Stability

    According to reports, Nick Timiraos, the Federal Reserve’s mouthpiece, said that there was a saying that the Federal Reserve would raise interest rates until there was a problem. In the past year, a big surprise is that the interest rate increase has not caused any destructive impact, but this is no longer the case. After the collapse of Silicon Valley Bank (SVB) and Signature Bank, regional banking stocks sold sharply on Monday, which may push the Federal Reserve into a situation it has been hoping to avoid in the past year: to address the impact on financial stability while fighting inflation. This situation may force Fed Chairman Powell and his colleagues to choose the issues that the Fed needs to focus on. Nick Timiraos: The SVB incident may force Powell to choose the issues that the Federal Reserve needs to focus on Analysis based on this information:The Federal Reserve’s mouthpiece, Nick Timiraos, recently stated that the Fed would raise interest…

    03/14/2023
    126
  • BlackRock: Federal Reserve Must Continue to Raise Interest Rates Despite Banking Industry Pressure

    It is reported that the investment research institute of BlackRock, the world’s largest asset management company, said that although the pressure of the banking industry is weakening investor confidence and tightening the financial environment, the Federal Reserve will still need to continue to raise interest rates to cope with inflation. The agency said that the current development will not cause the Federal Reserve to suspend interest rate increase. The current environment is different from that in 2008, when all monetary policy levers were used to support the economy. BlackRock: Although the banking industry is under pressure, it is expected that the Federal Reserve will continue to tighten monetary policy Analysis based on this information:In a report released recently, the investment research institute of BlackRock, the world’s largest asset management company, stated that despite the pressure on investor confidence and the tightening of the financial environment plaguing the banking industry, the Federal Reserve must continue to raise interest rates to combat…

    03/14/2023
    70
  • Bank of Silicon Valley Event Affects Federal Reserve’s Interest Rates Expectations

    It is reported that the Bank of Silicon Valley event weakened the expectations of the Federal Reserve to raise interest rates, and the December contract of the United States federal funds futures jumped 20 basis points to 95.26. The US dollar index fell 30 points in the short term to 104.03, and the decline of the US dollar against the yen USD/JPY widened to 1%. Spot gold continued to rise, hitting $1890/ounce upwards, rising 1.25% in the day. Nasdaq futures rose to 1%. BTC once exceeded US $22000. The Bank Event in Silicon Valley Weakens the Fed’s Interest Rate Increase Expectation Analysis based on this information:The recent Bank of Silicon Valley event has generated significant impact on the financial markets, especially in terms of the expectations of the Federal Reserve to increase interest rates. The December contract of the United States federal funds futures has shot up by 20 basis points to 95.26, signaling a decline in the hopes of…

    03/13/2023
    69
  • European Central Bank Stands Firm Despite Market Volatility

    According to reports, Eurosystem sources told the International Market News Agency (MNI) that despite the collapse of the Silicon Valley Bank of the United States (SVB) and the expected decline in market interest rates, the European Central Bank still hopes to advance its plan of raising interest rates by 50 basis points in accordance with the previous guidelines, although they admit that they will need to be more cautious in determining the future interest rate path prospects. Sources: The European Central Bank insisted on a 50 basis point interest rate increase plan in the turbulent market Analysis based on this information:The European Central Bank (ECB) reportedly plans to proceed with its interest rate hike despite the recent collapse of the Silicon Valley Bank (SVB) and the expected decline in global market interest rates. According to Eurosystem sources who spoke with the International Market News Agency (MNI), the ECB hopes to raise interest rates by 50 basis points, as previously outlined….

    03/13/2023
    69
  • Federal Reserve Expected to Take No Further Action in Interest Rates

    It is reported that the Federal Reserve’s interest rate swap currently shows that the most likely scenario is that the Federal Reserve will no longer raise interest rates. The Fed’s interest rate swap currently shows that the most likely scenario is that the Fed will no longer raise interest rates Analysis based on this information:The Federal Reserve’s interest rate swap is used as an indication of the market’s expectations on the Federal Reserve’s plans for monetary policy. It has been reported that the current readings of the interest rate swap indicate that the most probable scenario is that the Federal Reserve will not raise interest rates any further. This message has significant implications on the market and the economy. The Federal Reserve’s decision on interest rates is among the most closely monitored events by investors and financial experts worldwide. The rates’ rise or fall significantly impacts spending and investment in industries such as housing, cars, and other financial investments. A…

    03/13/2023
    70
  • Traders’ Belief on Federal Reserve’s Interest Rate Decision

    It is reported that according to CME’s “Federal Reserve observation”, traders now believe that the probability of the Federal Reserve to maintain interest rates unchanged in March is 54%, and the probability of raising interest rates by 25 basis points is 46%. Traders now believe that the possibility of the Federal Reserve keeping interest rates unchanged in March is 54% Analysis based on this information:The Federal Reserve is one of the most critical institutions in the financial system of the United States. Decisions taken by the Federal Reserve often shape the financial environment in the country and, consequently, impact the global economy. One of the most looked at decisions is the decision on interest rates. Recently, CME’s “Federal Reserve observation” reported that traders now believe that the probability of the Federal Reserve maintaining interest rates unchanged in March is 54%, while the probability of raising interest rates by 25 basis points is 46%. The belief of traders on the Federal…

    03/13/2023
    69
  • High Probability of Federal Reserve Raising Interest Rates

    It is reported that according to the CME Federal Reserve, the probability of the Federal Reserve raising interest rates by 25 basis points in March to the range of 4.75% – 5.00% is 96.0%; The probability of raising interest rate by 50 basis points dropped to 0, while the probability observed last time (March 8) was 73.5%. The probability of the Federal Reserve raising interest rates by 50 basis points in March is reduced to 0 Analysis based on this information:The message reports that the CME Federal Reserve predicts there is a 96.0% chance the Federal Reserve will raise interest rates by 25 basis points in March. This means that the current interest rate of 4.50% is likely to be raised to a range between 4.75% and 5.00%. It is important to note that this prediction is not a guarantee, but is an indicator based on market data analysis. The Federal Reserve has several reasons for raising interest rates, one…

    03/13/2023
    83
  • Goldman Sachs predicts a halt in Fed’s interest rate hike

    According to reports, Goldman Sachs said that in view of the recent pressure of the banking system, it no longer expected the Federal Reserve to raise interest rates at the meeting on March 22. The expectation that the Federal Reserve will raise interest rates by 25 basis points in May, June and July remains unchanged, and the terminal interest rate is now expected to be 5.25-5.5%. (Golden Ten) Goldman Sachs: maintain the expectation that the Federal Reserve will raise interest rates by 25 basis points in May, June and July Analysis based on this information:Goldman Sachs has made an announcement regarding the interest rate hikes by the Federal Reserve. According to reports, the investment bank has stated that it no longer expects the central bank to raise interest rates in the meeting scheduled for March 22. This update comes in the backdrop of the recent market volatility and the pressure on the banking system. The Federal Reserve, under the leadership…

    03/13/2023
    71
  • Federal Reserve Plans to Lower Interest Rates

    It is reported that the Federal Reserve will cut interest rates by 25 basis points before the end of the year.
    The Federal Reserve will cut interest rates by 25

    03/10/2023
    64
  • Federal Reserve’s Interest Rate Hike Probabilities

    According to CME\’s \”Federal Reserve Observation\”, the probability of the Federal Reserve raising interest rates by 25 basis points to 4.75% – 5.00% in March is

    03/10/2023
    78
  • Federal Reserve Swap and Interest Rates

    It is reported that the Federal Reserve swap shows that the probability of raising interest rates by 50 basis points in March will fall below 50%.
    Federal Reser

    03/10/2023
    68
  • Federal Reserve Likely to Raise Interest Rates in 2022

    According to CME\’s \”Federal Reserve Observation\”, the probability of the Federal Reserve raising interest rates by 25 basis points to 4.75% – 5.00% in March is

    03/10/2023
    73
  • Federal Reserve Chairman Emphasizes Lack of Decision on Interest Rates

    According to reports, Federal Reserve Chairman Powell said that it must be emphasized that the Federal Reserve has not made any decision on the pace of future i

    03/08/2023
    84
  • The Federal Reserve needs to continue raising interest rates to reduce inflation

    According to reports, Thomas Barkin, chairman of the Richmond Federal Reserve, said that the Federal Reserve needed to continue to raise interest rates in order

    03/08/2023
    120
  • Probability of Interest Rate Hike in March Up by 75%

    It is reported that the swap transaction of the Federal Reserve showed that the probability of raising interest rates by 50 basis points in March increased to …

    03/08/2023
    68
  • Federal Reserve Aims to Raise Interest Rates Soon

    It is reported that according to CME\’s \”Federal Reserve Observation\”, the probability of the Federal Reserve raising interest rates by 25 basis points in March…

    03/08/2023
    66
  • Federal Reserve Chair faces complex economic landscape

    On March 7, the task of Federal Reserve Chairman Powell became more complex. Just a month ago, the US economy seemed to be cooling down and inflation was also …

    03/07/2023
    68