Urgent: The Fed issues its decision and the markets are all upside down! The interest rate is 4.4% at the end of the year



 Moments ago, the US Federal Reserve issued its decision to raise interest rates, which the markets have been waiting for, and the Fed decided to raise interest rates by 75 basis points, bringing US interest rates to 3.25% from 2.5%.


Fed members revised their inflation expectations by the end of this year to 5.4%, to decline by about 2.8% in 2023, 2.3% at the end of 2024, and reach 2% by the end of 2025.


All Fed members voted in a row to raise interest rates by 75 basis points, and set interest rates to reach 4.4% by the end of this year.

Investors are waiting for Jerome Powell's press conference, which will start within 30 minutes from now, in which the US Federal Reserve Governor will talk about America's monetary policy, and the interest rate that is targeted at the end of this year and next.


Prices before the Fed's decision

Gold contracts are now recording $1678.75 an ounce, an increase of 0.46% in the current session, as a result of the increasing tensions that followed the Russian President’s announcement, the partial mobilization of the Russian army, as well as silver rose by 2.04% to record $19,575 an ounce.

The US Dollar Index rose 0.63% to reach 110,632, its highest level in 20 years. The euro fell to 0.9886 against the dollar, losing 0.84%.

The US markets are now rising, led by the S&P 500 by 0.66%, the Dow Jones by 0.5% and the Nasdaq by 0.66%.

As for Bitcoin, it rises by 3.75% to record $19442.7 for the position.



Urgent: The violent rise of the dollar to 111 .. and the markets are on a hot plate after the Fed’s decision


 The US dollar index jumped to 111.203 after the US Fed’s decision, gold fell to $ 1656.4 an ounce, down 0.52%, a loss of more than 1% since the decision, and the two-year Treasury bonds jumped to 4.0441, up 2.2%, and Bitcoin’s gains are now shrinking as it lost more than 2 % and continues to decline.

The US markets are also down, with the Nasdaq now losing 0.97%, the Dow Jones 0.63%, and the S&P 500 0.74%.

- The US Federal Reserve issued a moment ago its decision to raise interest rates, which the markets had been waiting for, and the Fed decided to raise interest rates by 75 basis points, bringing US interest rates to 3.25% from 2.5%.

Fed members revised their inflation expectations by the end of this year to 5.4%, to decline by about 2.8% in 2023, 2.3% at the end of 2024, and reach 2% by the end of 2025.

All Fed members voted to raise interest rates by 75 basis points and set interest rates to reach 4.4% by the end of this year.

Investors are waiting for Jerome Powell's press conference, which will start within 30 minutes from now, in which the US Federal Reserve Governor will talk about America's monetary policy, and the interest rate that is targeted at the end of this year and next.


Urgent: Details of the Federal Reserve's statement..unemployment, recession, and slowing economy within the Fed's expectations


The US Federal Reserve decided to raise interest rates by 75 basis points, to rise to the range of 3% - 3.25%, which is the highest since early 2008, and this comes after the third raise by 75 basis points in a row, and officials expected a rise in the unemployment rate to 4.4% next year, which will record Now 3.7%, which indicates a recession expected next year.

As for the growth of the US economy, the Fed members see that the gross domestic product will slow to 0.2% in 2022, and then rise again in the following years and reach 1.8%, and this comes after the realization of the GDP decline in two consecutive quarters.

In addition, the Committee announced that the Committee would continue to reduce its holdings of Treasury and Agency debt, and Agency mortgage-backed securities, Noting that the committee is firmly committed to bringing inflation back to Its goal is 2%.

The increases also come with hopes that overall inflation will fall to 5.4% by the end of this year, according to the Fed's preferred PCE price index, which showed inflation at 6.3% in August. The Economic Outlook summary then sees inflation fall back to the Fed's 2% target by 2025.

Core inflation excluding food and energy is expected to fall to 4.5% this year, little changed from the current 4.6%, before eventually declining to 2.1% by 2025. (The PCE reading was well below the consumer price index).

The drop in economic growth came even though the FOMC statement used language that in July described spending and production as "weak". The meeting's statement indicated that "recent indicators point to modest growth in spending and production." Those were the only changes to a statement that won unanimous approval.

The bullet plot showed nearly all members on board with higher rates in the near term, although there were some differences in later years. Six of the 19 "points" were in favor of taking rates into the 4.75%-5% range next year, but the central trend was to 4.6%, which would put rates in the 4.5%-4.75% region. The Fed targets its funding rate in quarter-point ranges.

The chart indicated as many as three interest rate cuts in 2024 and four more in 2025, lowering the long-term fund's rate to a median forecast of 2.9%.

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