Fed to Hold FOMC Meeting on the 15th and 16th; Expectations Grow for First Rate Hike in 3 Years and 2 Months

MacroDigital FinanceCommodity Impact 5
โดย Jiji Press·US·Read original
Summary · why it matters

The U.S. Federal Reserve Board will hold a Federal Open Market Committee meeting on the 15th and 16th to discuss monetary policy. Fed Chairman Warsh stated plainly that employment is stable and that "the priority is price stability," and market expectations are growing that the Fed will proceed with its first rate hike in 3 years and 2 months, since July 2023. The August consumer price index released by the U.S. Department of Labor on the 11th rose 3.4 percent year-on-year, and the core index, which excludes volatile energy and food, accelerated to a 0.3 percent month-on-month rise, up 0.1 percentage point from the previous month. Against the backdrop of higher energy prices tied to the U.S.-Iran conflict, crude oil futures broke through the 100 dollars per barrel mark on the 10th, hitting a roughly four-month high. The European Central Bank decided on an additional rate hike on the 10th, and the Bank of Japan is also expected to raise its policy rate by 0.25 percent at its monetary policy meeting on the 17th and 18th. If Warsh decides to raise rates, tensions with President Trump, who is calling for rate cuts, will escalate sharply.

Impact on stocks 4

Others · 4 stocks
Effective Federal Funds Rate
EFFR
▲ PositiveMonetaryrelevance

Market expectations grow for the Fed's first rate hike in over three years, which would raise the effective federal funds rate.

ECB rates
ECBRATES
▲ PositiveMonetaryrelevance

ECB decided on an additional rate hike, pushing the ECB policy rate/yield higher.