(New York = Yonhap Infomax) Correspondent Haram Lim = CNBC, a US economic broadcaster, pointed out that the market may be expecting a bit prematurely as the end of the Federal Open Market Committee (FOMC) of the US Federal Reserve in March is imminent. did.
CNBC reported on the 22nd (local time), “Traders in the market believe that the Fed will go into a pause after raising rates at this FOMC,” and “but there are many reasons not to be convinced.”
Financial market participants expect the Fed to carry out its final rate hike at the FOMC.
In the interest rate market, the Fed is starting to cut interest rates from summer this year, and by the end of the year, there is even a rumor that the Fed can lower interest rates by about 60bp from now.
CNBC pointed out that the key to market expectations is ‘temporary suspension’, but predicted that there is a possibility that Fed Chairman Jerome Powell may not indicate this.
Powell could argue that the Fed’s recent banking problem and inflation are two different issues.
And it can be mentioned that the economy is still hot and inflation is still too high to stop rate hikes.
In this case, the market could undergo a major correction, CNBC reported.
Accordingly, CNBC added that a counter-deal that weighs on a scenario in which Chairman Powell and the Fed take a hawkish stance may be advantageous.
The Fed will announce its interest rate decision at 2 p.m. today. At the same time, it releases its monetary policy statement and economic outlook.
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