Markets and investors are waiting and wondering how much the Fed's September interest rate decision will line up with expectations, with many anticipating a rate pause this month. SEI Chief Investment Officer Jim Smigiel and Dreyfus and Mellon Chief Economist Vincent Reinhart join Yahoo Finance Live to share their predictions on Fed Chair Jerome Powell's ultimate decision. 'The Fed does not like to disappoint when the market is kind of all lined up with an expectation like they are for this week, where there will be a pause — the Fed will deliver on that,' Smigiel comments on the market's hawkish sentiment. 'However, we do think there is, at the least, one more hike baked in the cake. So that will probably come in November.' 'The big message the Fed's going to want to convey is they're going to keep policy restrictive for as long as it takes,' Reinhart outlines. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Markets and investors are waiting and wondering how much the Fed's September interest rate decision will line up with expectations, with many anticipating a rate pause this month. SEI Chief Investment Officer Jim Smigiel and Dreyfus and Mellon Chief Economist Vincent Reinhart join Yahoo Finance Live to share their predictions on Fed Chair Jerome Powell's ultimate decision.
"The big message the Fed's going to want to convey is they're going to keep policy restrictive for as long as it takes," Reinhart outlines.to watch this full episode of Yahoo Finance Live.And Jim, I'm interested to get your take as well about what you expect from the Fed tomorrow. And also, Jim, just listen how you're thinking about the market. Where you're seeing investment opportunities.Sure. For the most part, we agree with Vincent.
We expect them to deliver. And we're not necessarily in the camp that it'll be a one-and-done situation. We think that a lot of what's happening underneath is, from an economic perspective, is probably still a little bit hotter than what the chairman and the FOMC would like to see.We have a little bit of a turn in some of the inflation numbers, obviously, particularly from a headline perspective, given what's happening in the energy markets.
It's fairly unusual to see all of this multiple expansion in the market when real rates are rising. We're a little bit skeptical of that. And therefore, we are a bit negative on the market. And we are fading further appreciation from here.Vincent, we're talking about the FOMC as a whole. But the reality is this is a divided committee.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Pace of Canadian home construction continues to hit new highs: BMO economistDaily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
Read more »
Inflation will worry Bank of Canada, but economist says rate hike unlikelyCanada’s headline inflation rate has gone up for the second straight month, and one economist predicts that the higher-than-expected rise is likely to keep interests rates high until next spring, at the earliest.
Read more »
Inflation 'going the wrong way' and more interest rate hikes are possible: economistFor the second consecutive month, Canada's inflation rate has risen, and one economist is warning a spike inflation could mean more rate hikes are ahead.
Read more »
Holiday spending expected to return to 'more normal' levels as inflation moderates: EconomistAmericans are expected to open up their wallets this holiday season.
Read more »
– Episode 305: The economics of the housing crisis with Alex Carrick and Michael Guckes - constructconnect.comOn this episode of the Construction Record Podcast, digital media editor Warren Frey speaks with ConstructConnect chief economist Alex Carrick and senior economist Michael Guckes about the current housing crisis, how it affects construction and the wider
Read more »
Futures dither after Wall St rout; Fed rate verdict in focusA slump in chipmakers on concerns of weak demand and bruised mega-cap growth stocks due to rising Treasury yields pushed the S&P 500, Nasdaq and Dow tumbling between 0.8% and 1.5% on Friday, their worst single-day fall since Aug. 24. Traders almost unanimously expect the Fed to keep rates unchanged at 5.25% to 5.5% at its meeting on Wednesday, while the odds for another pause in November is at 69%, according to the CME FedWatch Tool. 'Further rate hikes would risk sending the economy into a hard landing scenario,' said Thomas Simons, U.S. economist at Jefferies.
Read more »