Fed Rate Hike Strategy for Dollar, S&P 500 and Gold

[MongiIG]

Perhaps the most consequential policy decision from the Federal Reserve in years lays ahead. Either continue to cater to the speculative mob or reign in financial excess and inflation? We talk about event, the scenarios and the likely response from key markets.

 

 

[MongiIG]

The Fed is expected to raise rates by a half point. Investors wonder if it will get more aggressive
PUBLISHED TUE, MAY 3 2022 | by Patti Domm | CNBC

KEY POINTS:

• The Federal Reserve is expected to raise interest rates Wednesday for the second time since 2018, boosting the fed funds target rate by a half-percentage point.
• The central bank is also expected to launch a program to reduce its massive bond holdings by $95 billion a month, starting in June.
• The markets are braced for a hawkish Fed, but many investors are wondering if Fed Chair Jerome Powell will signal that the central bank is willing to get even tougher with rate increases.