By Davide Barbuscia NEW YORK (Reuters) - Some large U.S. bond investors said on Wednesday they believe the Federal Reserve has reached a peak in its ...
STORY CONTINUES BELOW THESE SALTWIRE VIDEOSNEW YORK - Some large U.S. bond investors said on Wednesday they believe the Federal Reserve has reached a peak in its interest rate hiking campaign, despite inflation heating up in August on the back of surging energy prices.
Some bond fund managers, however, believe it is only a matter of time until the 525 basis points of rate increases the Fed has already delivered take their toll on consumer prices. The U.S. central bank last raised interest rates in July, by 25 basis points. Bets in the Fed funds futures market showed traders broadly believe the Fed will leave rates unchanged at the conclusion of its meeting on Sep. 20, but late Wednesday were pricing for a 40% probability of an additional 25 basis points increase in November.
"After today’s numbers we continue to expect the Federal Reserve to skip any further rate hike in September and, on balance, we expect no further rate hikes in this cycle," he said.
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.
Fed economists sound alarm on hedge funds gaming US TreasuriesBy Davide Barbuscia NEW YORK (Reuters) - Researchers at the Federal Reserve have issued warnings in recent weeks about possible disruptions in U.S.
Read more »
Traders keep view the Fed is probably done with rate hikes(Reuters) - Futures contracts that settle to the Federal Reserve's policy rate on Wednesday reflected growing confidence that the U.S. central bank ...
Read more »
Traders keep view the Fed is probably done with rate hikesKitco News collects and features the top financial, economic and geopolitical news from around the world. Kitco's aggregated sources include some of the top newswires in the world including the Association Press, Canadian Press, Japanese Economic Newswire, and United Press International.
Read more »
J.P.Morgan expects no further Fed interest rate hikes this cycleInterest rate futures reflected growing confidence that the U.S. central bank probably will not increase rates any further after data showed U.S. consumer prices increased by the most in 14 months in August, but the annual rise in underlying inflation was the smallest in nearly two years. 'Despite still rising oil prices in early September, we expect the impact of oil price spikes on CPI to be limited,' J.P.Morgan's Chief Global Strategist David Kelly said in a note. 'We still believe that, barring some further shock, year-over-year headline consumption deflator inflation will be below the Fed's 2% target by the fourth quarter of 2024.'
Read more »
J.P.Morgan expects no further Fed interest rate hikes this cycle(Reuters) - J.P.Morgan Asset Management said on Wednesday it expects no further interest rate hikes from the U.S. Federal Reserve in this cycle, after ...
Read more »
J.P.Morgan expects no further Fed interest rate hikes this cycleMarket News
Read more »