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02 Nov 2022

Market Wire: Dollar Slides As Fed Pledges to Take Economic Risks “Into Account”

The Federal Reserve’s rate-setting committee raised benchmark rates by 75 basis points and hinted at a more gradual tightening pace in the months ahead. At the conclusion of its two-day meeting, the Federal Open Market Committee unanimously voted to raise the target range for the federal funds rate to 3.75-to-4 percent, with no dissents in favour of a smaller move. In a largely-unchanged official statement setting out the decision, policymakers set the stage for a more nuanced approach to setting rates, saying “In determining the pace of future increases in the target range, the Committee will take into account the...

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Market Briefing: Markets Go Quiet Ahead of Fed Decision

Good morning and happy Federal Reserve day to all who celebrate. With asset prices resembling Schrödinger’s cat – simultaneously poised for a rally or a crash – bond yields are steady and exchange rates are tightly rangebound ahead of this afternoon’s highly-anticipated announcement. The central bank is widely expected to raise rates by another three-quarters of a percentage point, while signalling a coming deceleration in tightening. The big question for markets is how Jerome Powell will manage the accompanying communications conundrum, somehow telling investors to expect a slower pace of rate hikes without triggering a drastic loosening in financial conditions....

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