HomeEconomyThe Fed's final interest rate forecast hits a new high and volatile... Economy The Fed's final interest rate forecast hits a new high and volatile stocks and bonds By farahat September 16, 2022 0 144 views Share FacebookTwitterPinterestWhatsApp GS -1.% Add to Watchlist/Remove from Watchlist Join to watch List Add Location Job added successfully: Please name your portfolio type: purchase Sell date: quantity: price Point value: Leverage: 1:11: 1: 1: 1: 10 1: 14 1: 63 1: 64 1: 75 Committee: CREATE NEW WATCH LIST CREATE495 7907 495 CREATE NEW HOLDING PORTFOLIO ADD CREATE 10007907 7907 + Add another position to close BARC -0.% Add to Watchlist/Remove from Watchlist Add to watch list Add Job Job added successfully: Please enter the name of your portfolio type: purchase Sell date: quantity: price Point value: Leverage: 1:1 1: 1: 1: 1: 1 : 52 1: 21 1: 64 1: 63 Committee : CREATE NEW WATCH LIST CREATE CREATE NEW HOLDING PORTFOLIO ADD CREATE 450 7907 + add another Closing a position ICE -1.% 495 Add to Watchlist/Remove from Watchlist Add to watchlist Add Location Job added successfully: Please name your holding portfolio type: purchase Sell date: quantity: price Viewpoint value: Leverage: 1:1 1: 1: 03 1: Big David Pabusia NEW YORK (Reuters) – Expectations of how aggressively the Federal Reserve will raise interest rates to fight inflation hit a new high this week, adding to pressure on stocks and bonds . As investors await another huge interest rate US central bank September crease – meeting, the higher-than-expected inflation figure raised the stakes on the so-called terminal rate, now at 4. %, Refinitiv data shows. Exceed45 basis points higher than the current benchmark overnight rate, from a peak of around 3.7% expected a month ago. Higher U.S. interest rates may be unwelcome to stocks, but rose in the summer, while bond yields, which are inversely related to prices, retreated from highs as sending Hope the Fed will slow down the pace of rate hikes. This week, when the U.S. consumer price index (CPI) in August showed inflation rising at an annual rate of 8.3%, exceeding economists’ forecasts of 8.1%, those hopes were dashed. “I think the Fed will put another 25 The base point points to basis points of rate hikes come into the market, but that’s how fast they’re raising rates, that’s the point of contention,” DoubleLine Deputy Chief Investment Officer Jeffrey Sherman said. Expectations of a more hawkish Fed also boosted real yields, suggesting investors are holding U.S. government bonds how much you can earn each year and lessen the attractiveness of risky assets when they rise. on the output -Year Treasury Inflation Protected Securities (TIPS) – known as real yields because they remove expected inflation – climbed to 1. Friday’s percentage, the highest since January 266. Since early August, real yields have risen by about 50 bp s. while benchmarking – The 2-year Treasury yield has climbed about 8 basis points this week to 3.10%, flirting new – if they are more than 3. -years Highest % they reached in June Level. Goldman Sachs (NYSE: 2019GS ) said in a report on Friday that these yields could hit 3 by the end of the year.11%. The outlook for corporate debt is not good. “Investors don’t show up for a so-called soft landing on the Fed,” said Danielle Poli, co-portfolio manager of Oaktree Diversified Income Fund. or less hard landing) with confidence in the ability. ICE Yield Spread (NYSE: 7907ICE) Bank of America US High Yield Index , the benchmark commonly used in the junk bond market, has risen to nearly 63 Week basis point, from 150 bps before CPI report. ” When growth is below trend, a rapid rise in (real rates) is usually bad for spreads,” 500400 Barclays Bank (London: BARC) strategists said in a note Friday. “We don’t think this time will be different,” they said. 150 Share FacebookTwitterPinterestWhatsApp Previous article'Gran Turismo': Orlando Bloom Joins David Harbour in Sony's Racing Movie (Exclusive)Next articleTokyo Game Show 2022 – Crisis Core Reunion is a fantastic update to the classic game farahat RELATED ARTICLES Economy BOJ policymaker rules out near-term policy shift, calls for caution November 30, 2023 Economy IMF says Sri Lanka debt deal could help board clear first bailout review November 30, 2023 Economy Brookfield’s ‘complex’ revised offer not in best interest of shareholders – Origin November 30, 2023 LEAVE A REPLY Cancel reply Comment: Please enter your comment! 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