Jump to content

The Fed is likely to signal a March interest rate hike and that further policy tightening is coming


Recommended Posts

The Fed is likely to signal a March interest rate hike and that further policy tightening is coming
PUBLISHED TUE, JAN 25 2022 by Patti Domm CNBC
image.png

KEY POINTS:

  • The Federal Reserve is expected to signal at its meeting this week that it is ready to raise interest rates as soon as March and that it will consider other policy tightening.
  • The Fed issues its policy statement Wednesday afternoon, at the end of its two-day meeting, and it is expected to show that it is willing to take the steps necessary to fight inflation.
  • “I don’t think they’re going to be spooked by this,” said one strategist of the stock market’s correction. “They need to tighten financial conditions so they can have a better handle on inflation.”


The Federal Reserve is expected to signal at its meeting this week that it is ready to raise interest rates as soon as March and that it will consider other policy tightening, reversing the easy policies it put in place to fight the pandemic.

The Fed begins its two-day meeting Tuesday, and on Wednesday afternoon, the central bank is expected to issue a new statement that shows it is resolved to fight inflation. Against the backdrop of a violent stock market correction, Fed officials are expected to say they are ready to push up the fed funds rate from zero as soon as March.

“We don’t expect them to sound dovish,” said Mark Cabana, head of U.S. short rate strategy at Bank of America. “The [bond] market seems to be reacting to the drop in equities, plus the geopolitical tensions, so maybe the Fed sounds not as hawkish as they otherwise would have. But we don’t think the Fed is going to come out and tell the market it’s wrong for pricing in four rate hikes this year.” For more on this CNBC

Link to comment

WORLD ECONOMY
IMF sees potential for further market turbulence as central banks hike rates

PUBLISHED THU, JAN 27 2022 by Karen Gilchrist CNBC
image.png

The International Monetary Fund has warned of further turbulence ahead for financial markets, particularly as governments around the world shift gears into recovery mode.

Central banks’ moves to tighten monetary policy and curb rising inflation could push riskier stocks deeper into the red even as policymakers pledge a smooth transition, the IMF’s Tobias Adrian, financial counsellor and director of monetary and capital markets, told CNBC’s Geoff Cutmore. Full article on CNBC

Link to comment

image.png

image.png

Facing both turbulent financial markets and raging inflation, the Federal Reserve on Wednesday indicated it could soon raise interest rates for the first time in more than three years as part of a broader tightening of historically easy monetary policy.

In a move that came as little surprise, the Fed’s policymaking group said a quarter-percentage point increase to its benchmark short-term borrowing rate is likely forthcoming. It would be the first rise since December 2018.

 

Chairman Jerome Powell added that the Fed could move on an aggressive path. Full article CNBC

Fed decision January 2022: Federal Reserve points to interest rate hike  coming in March

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • EURUSD Elliott Wave Analysis Trading Lounge Day  Chart, 5 March 24   Euro/U.S.Dollar (EURUSD) Day Chart EURUSD Elliott Wave Technical Analysis FUNCTION: Trend   MODE: Impulsive   STRUCTURE: Blue wave 1   POSITION:black wave 3   DIRECTION NEXT LOWER DEGREES:blue wave 2     DETAILS: black  wave 2 looking completed at 1.06985  .Now blue wave 1 of 3 is in play . Wave Cancel invalid level: 1.06985   The "EURUSD Elliott Wave Analysis Trading Lounge Day Chart" dated 5 March 24, offers a comprehensive analysis of the Euro/U.S. Dollar (EURUSD) currency pair using the Elliott Wave methodology. Conducted on the daily chart, this analysis aims to provide insights into the prevailing trend dynamics and potential future price movements within the broader wave structure. The identified "FUNCTION" is "Trend," indicating a primary focus on determining and navigating the existing trend in the EURUSD pair. This suggests an emphasis on identifying and capitalizing on sustained directional movements over an extended period. The specified "MODE" is "Impulsive," suggesting that the current market conditions are characterized by forceful and decisive price movements aligned with the overall trend. This implies a strong and sustained directional momentum in the EURUSD pair, conducive to impulsive waves. The described "STRUCTURE" is "Blue wave 1," representing a specific phase within the Elliott Wave pattern. The analysis concentrates on the development and progression of blue wave 1, indicating a significant upward movement within the broader wave structure. The identified "POSITION" is "Black wave 3," highlighting the current placement within the larger Elliott Wave pattern. Black wave 3 signifies a powerful phase in the upward trend of the EURUSD pair and suggests a sustained directional move. Regarding "DIRECTION NEXT LOWER DEGREES," the focus is on "Blue wave 2." This implies an anticipation of the next corrective phase within the Elliott Wave pattern, suggesting a temporary pullback or consolidation after the completion of the impulsive black wave 3. In the "DETAILS" section, it is noted that "Black wave 2 looking completed at 1.06985." This signifies the conclusion of a specific subwave within the Elliott Wave pattern. It further states that "Now blue wave 1 of 3 is in play," indicating the initiation of the next higher-degree wave. The "Wave Cancel invalid level" is set at 1.06985, serving as a crucial reference point. A breach beyond this level would invalidate the current wave count, necessitating a reassessment of the analysis. In summary, the EURUSD Elliott Wave Analysis for the daily chart on 5 March 24, emphasizes the impulsive and trending nature of the market. The analysis anticipates the continuation of the upward trend, with specific attention to the completion of sub waves and the initiation of the next higher-degree wave. The Wave Cancel invalid level at 1.06985 serves as a critical marker for potential shifts in the wave count and trend dynamics.       EURUSD Elliott Wave Analysis Trading Lounge 4 Hour  Chart, 5 March 24   Euro/U.S.Dollar (EURUSD) 4 Hour Chart EURUSD Elliott Wave Technical Analysis FUNCTION: Trend   MODE: Impulsive   STRUCTURE: red wave 3   POSITION:blue wave 1   DIRECTION NEXT LOWER DEGREES:Red wave 4     DETAILS: Red  wave 2 of 1 looking completed at 1.07958  .Now Red wave 3 of blue wave 1 is in play . Wave Cancel invalid level: 1.06985   The "EURUSD Elliott Wave Analysis Trading Lounge 4 Hour Chart" dated 5 March 24, provides a detailed analysis of the Euro/U.S. Dollar (EURUSD) currency pair using the Elliott Wave methodology. The analysis is conducted on the 4-hour chart, aiming to discern the prevailing trend dynamics and forecast potential future movements within the broader wave structure. The identified "FUNCTION" is "Trend," indicating that the analysis primarily focuses on identifying and navigating the existing trend in the EURUSD pair. The emphasis is on capturing the directional movement of prices over a more extended period. The specified "MODE" is "Impulsive," suggesting that the current market conditions are characterized by forceful and decisive price movements aligned with the overall trend. This implies a strong and sustained directional momentum in the EURUSD pair. The described "STRUCTURE" is "Red wave 3," representing a specific phase within the Elliott Wave pattern. The analysis focuses on the development and progression of red wave 3, indicating a significant upward movement within the broader wave structure. The identified "POSITION" is "Blue wave 1," signifying the current placement within the larger Elliott Wave pattern. Blue wave 1 represents a higher-degree wave, suggesting a powerful phase in the upward trend of the EURUSD pair. Regarding "DIRECTION NEXT LOWER DEGREES," the emphasis is on "Red wave 4." This highlights the anticipation of the next phase within the Elliott Wave pattern, suggesting a corrective move after the completion of the impulsive red wave 3. The "DETAILS" section notes that "Red wave 2 of 1 looking completed at 1.07958." This signifies the completion of a specific subwave within the Elliott Wave pattern. It further states that "Red wave 3 of blue wave 1 is in play," indicating the continuation of the upward trend and the start of the next higher-degree wave. The "Wave Cancel invalid level" is set at 1.06985, serving as a crucial reference point. A breach beyond this level would invalidate the current wave count, necessitating a reassessment of the analysis. In summary, the EURUSD Elliott Wave Analysis for the 4-hour chart on 5 March 24, emphasizes the impulsive and trending nature of the market. The analysis anticipates the continuation of the upward trend, with specific attention to the completion of sub waves and the initiation of the next higher-degree wave. The Wave Cancel invalid level at 1.06985 serves as a critical marker for potential shifts in the wave count and trend dynamics. Technical Analyst : Malik Awais Source : Tradinglounge.com get trial here!    
    • Elliott Wave Analysis TradingLounge Daily Chart, 5 March 24, Bitcoin/ U.S. dollar(BTCUSD) BTCUSD Elliott Wave Technical Analysis Function: Follow Trend Mode: Motive Structure: Impulse Position: Wave III Direction Next higher Degrees: wave (III) Wave Cancel invalid level: 31046.25 Details: The five-wave increase in wave (III) may be complete Watch out for Corrective Bitcoin/ U.S. dollar(BTCUSD)Trading Strategy: Bitcoin's rise continues higher From the rise of the third wave This is likely to break the all time high of 68997.75, but in the final stretch of the rally we still lack movement. Two more times to complete the large Impulse structure, watch out for corrections. Bitcoin/ U.S. dollar(BTCUSD)Technical Indicators: The price is above the MA200 indicating an Uptrend, Wave Oscillator is a bullish Momentum. TradingLounge Analyst: Kittiampon Somboonsod, CEWA Source : Tradinglounge.com get trial here!         Elliott Wave Analysis TradingLounge 4Hr Chart, 5 March 24, Bitcoin/ U.S. dollar(BTCUSD) BTCUSD Elliott Wave Technical Analysis Function: Follow Trend Mode: Motive Structure: Impulse Position: Wave III Direction Next higher Degrees: wave (III) Wave Cancel invalid level: 31046.25 Details: The five-wave increase in wave (III) may be complete Watch out for Corrective Bitcoin/ U.S. dollar(BTCUSD)Trading Strategy: Bitcoin's rise continues higher From the rise of the third wave This is likely to break the all time high of 68997.75, but in the final stretch of the rally we still lack movement. Two more times to complete the large Impulse structure, watch out for corrections. Bitcoin/ U.S. dollar(BTCUSD)Technical Indicators: The price is above the MA200 indicating an Uptrend, Wave Oscillator is a bullish Momentum.    
    • In the wake of a brewing conflict between the Nigerian government and Binance, cryptocurrency enthusiasts find themselves on edge, uncertain about the future of their digital investments. Rumors abound that Binance, along with other platforms, might be exacerbating the Naira's devaluation against the dollar, prompting the government to take a hard stance against the exchange. Despite longstanding allegations of wrongdoing, recent events have propelled the government to escalate its actions. The situation has escalated dramatically, with Binance's P2P platform disabled and a staggering $10 billion fine imposed for alleged illegal activities. This punitive measure, coupled with last year's $4.3 billion fine by the SEC, underscores the gravity of the situation. However, skepticism lingers regarding the astronomical sum demanded by the Nigerian government. While Binance has faced regulatory challenges in other jurisdictions, its resilience and market dominance have largely endured. Yet, the potential ramifications of losing access to a key crypto market like Nigeria cannot be ignored. Complicating matters further, the Nigerian House of Representatives has summoned Binance CEO Richard Teng, issuing a seven-day ultimatum for him to address allegations of terrorist financing and money laundering, among other charges. This development casts a shadow over the future prospects of Binance in the country. Amidst the uncertainty surrounding Binance's operations in Nigeria, users are scrambling to identify alternative platforms. While other centralized exchanges (CEX) remain operational within the country, the pressing question remains: which platform will emerge as the most dependable alternative should the situation worsen? https://punchng.com/reps-summon-binance-boss-over-alleged-terrorism-financing/
×
×
  • Create New...
us