12/8/2023 0 Comments Fixed deposit interest rate ocbc![]() ![]() Second, the US economy remains surprisingly resilient despite the Fed’s aggressive interest rate hikes, keeping upward pressure on UST yields.Ī measure from the New York Fed, that tracks the growth of US GDP on a weekly basis, shows that activity has slowed this year. Thus, officials expect the fed funds rate to remain elevated throughout the next few years to curb inflation at 5.00-5.25%, 3.75-4.00% and 2.75-3.00% at the end of 2024, 20 respectively. Its statement left the door open for further rate hikes by still referring to “the extent of additional policy firming that may be appropriate to return inflation to 2% over time.” The FOMC also updated its forecasts, still projecting another 25 basis points (bps) rate hike this year while only anticipating two 25bps rate cuts next year. But the Federal Open Market Committee (FOMC) kept its hawkish bias. Last month, the central bank left its fed funds interest rate unchanged, at 5.25-5.50% as officials wait for more data to see if earlier rate hikes will be sufficient to push inflation back towards the Fed’s 2% target. ![]() 10Y US Treasury (UST) yields have surged to 16-year highs above 4.50%, challenging financial markets across the globe.įirst, UST yields have increased because the Fed remains hawkish. ![]()
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