Fed Set to Decide on Rate Hike at September 16 Meeting

MacroDigital Finance Impact 4
โดย Yahoo Finance·US·Read original
Summary · why it matters

The Federal Reserve will announce its policy decision on Sept. 16, with expectations of a rate hike amid elevated inflation and CPI prices. Kevin Gordon, Head of Macro Research and Strategy at the Schwab Center for Financial Research, said a 25 basis point increase would not resolve supply issues but warned that without a monetary policy response, inflation risks running away and inflation expectations could stay elevated. He noted that PPI components mapping to PCE do not yet convince that inflation is on a durable path back to 2%. Yahoo Finance Senior Business Reporter Ines Ferré said gasoline and diesel prices are at record highs for this time of year, and noted Goldman Sachs now expects the Fed to cut rates next. Gil, speaking about client concerns, said higher rates raise the discount rate on long-duration equities, pressuring tech and growth stocks, and would make debt-financed data center buildouts by CoreWeave and Oracle more expensive, slowing the AI complex.

Impact on stocks 5

Artificial Intelligence▼ · 2 stocks
Oracle Corporation
ORCL
▼ NegativeMonetaryrelevance

Higher rates would make Oracle's debt-financed data center buildouts more expensive, slowing the AI complex.

Financials▲ · 1 stocks
Goldman Sachs Group Inc
GS
± MixedMonetaryrelevance

Goldman Sachs is cited only for its forecast that the Fed will cut rates next, a passing mention.

Others▲ · 2 stocks
％Effective Federal Funds Rate
EFFR
▲ PositiveMonetaryrelevance

The Fed is expected to hike rates 25bp at the Sept. 16 meeting amid elevated inflation, raising the effective fed funds rate.

Theme Impact 2

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