Investors are craving guidance from the Federal Reserve this week around what will happen to US interest rates in 2024. They’re likely to be disappointed.
Investors are hopeful that this week’s meeting of the US Federal Reserve’s important interest-rate setting committee might finally lift the uncertainty shrouding the US economic outlook – andInvestors are hoping Federal Reserve boss Jerome Powell will give a clear read on what will happen to US interest rates in 2024.Unfortunately, their hopes look bound to be disappointed, even though there’s little doubt as to the outcome of this week’s meeting.
As Bank of America strategists have pointed out, the torrent of cash flowing into low-risk money market funds reflects “one trillion dollars of doubt” about the outlook for the US economy and US interest rates.“The inflows to cash reflect a tremendous amount of doubt as to whether it’s a soft or hard landing,, whether it’s a bull market or still a bear market,” Michael Hartnett, BofA’s investment strategist wrote.
That’s why investors will be paying close attention to the Fed’s summary of economic projections – the so-called dot plot – which will be released after this week’s meeting. This means that the burning question for investors now is whether US interest rates are destined to remain higher for longer. There are also concerns that the weakening US jobs market will cause consumer spending to falter, forcing companies to lower prices to compete for market share.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Chris Minns open to a NSW voice to parliament regardless of federal referendum outcomeExclusive: The premier says state with largest First Nations population should not be the only one without a truth and treaty process
Read more »
‘Politics rather than science’: Federal policy places Tas salmon farming under threatThe future of Tasmania's vital salmon farming is under threat as the federal government works to protect endangered species in Macquarie Harbour. There are growing fears thousands of jobs could be cut if the government decides to reduce the state's largest aquaculture export. The $1.3 billion industry is also the main supplier for salmon across Australia. A scientific committee issued a warning several endangered species were heading towards extinction which subsequently prompted Environment Minister Tanya Plibersek to announce a $2.1 billion captive breeding program. Tasmania Shadow Environment Minister Jonathon Duniam has criticised Ms Plibersek for not giving the industry in Macquarie Harbour a guarantee it will continue and also accused her of navigating “politics rather than science and the economy”.
Read more »
Federal government could pay millions in compensation over asylum seeker data breachBreach, discovered by Guardian Australia, resulted in information being used to allegedly threaten some in detention
Read more »
‘Don’t accept that’: AFL set to investigate why ‘wobbly’ Blues star stayed on field‘Don’t accept that’: AFL set to investigate why ‘wobbly’ Blues star stayed on field
Read more »
Why ‘life’s pretty easy’ for Kalyn PongaThe normally reserved Knights captain has spoken for the first time about his girlfriend and the effect she has had on his football.
Read more »
Why ‘life’s pretty easy’ for Kalyn PongaThe normally reserved Knights captain has spoken for the first time about his girlfriend and the effect she has had on his football.
Read more »