Latest Fed Rate Outlook , Has Mixed Impact , on US Stock Markets.
Business Insider reports that U.S. stocks saw
mixed results as investors reacted to the
latest Federal Reserve interest rate outlook.
Business Insider reports that U.S. stocks saw
mixed results as investors reacted to the
latest Federal Reserve interest rate outlook.
On January 9, San Francisco Fed President Mary Daly,
along with Atlanta Fed President Raphael Bostic, said
the central bank is likely to raise rates past 5%.
On January 9, San Francisco Fed President Mary Daly,
along with Atlanta Fed President Raphael Bostic, said
the central bank is likely to raise rates past 5%.
According to Business Insider, they also said
the Fed is expected to keep rates raised as
a means of combating record-high inflation.
CME FedWatch suggests 80% odds
that another 25-basis-point hike
is on the way in February.
Investors are also eagerly anticipating
the December Consumer Price Index
report due out on January 12.
That report is a key inflation measure
that will have an influence on the
central bank's upcoming policy decisions. .
At the closing bell on January 9, the S&P 500 ended the day
down 0.08%, the Dow Jones Industrial Average ended
down 0.34% and the Nasdaq Composite went up 0.63%. .
Meanwhile, Bank of America has warned
that stock valuations remain too high and
the market risks dropping by as much as 30%.
Meanwhile, Bank of America has warned
that stock valuations remain too high and
the market risks dropping by as much as 30%.
Morgan Stanley has warned
that the S&P 500 could
slip an additional 22%. .
Morgan Stanley has warned
that the S&P 500 could
slip an additional 22%. .
However, according to Moody's economist, the chances
of the U.S. avoiding a recession are growing as
the number of layoffs has been below expectations.