fed signals rate hike interest; markets still skeptical (@nick_fainlight)
TRANSCRIPT
Reaching 2% Target ofInflation
W I L L R A T E SR I S E ?
FED SIGNALS INTEREST RATEHIKES; MARKETS STILL SKEPTICAL
Rate Hikes
Unemployment isdropping, however jobgrowth is not growing
fast enough
Possibility of 2-3 ratehikes this year
Investors predict 23%chance of hike in June,
and 52% percentchance of hike in July
Inflation Multiple Rate Hikes Investors PredictionsSteady Growth
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THE FED’S JUNEMEETING MAY DECIDEON RAISING INTEREST
RATES TWICE THISYEAR, S IGNALING A
CONTINUING UPTICKIN THE ECONOMY.
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The Fed signaled in Aprilthat policymakersintended to raise interestrates this summer ifsecond quarter economicgrowth continues toshow positive trends.
If Labor markets improveand inflation remainssteady at the Fed’s 2-percent target, thenhighly likely that FederalReserve raises itsinterest rates.
Rate Hike
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Investors are now predicting a June hike at 26percent and a July hike at 53 percent according
to Yahoo Finance.
PREDICTIONS
If all economic indicators are signaling apositive economic upswing, then up to 2
interest rate hikes this year could be possible.
HOWEVER QUITE AFEW EXPERTS REMAIN
SKEPTICAL OF THEFED'S
CONSIDERATIONS,CALLING IT A BLUFF
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Quite a few experts however remainskeptical of the Fed raising rates inthe first place, exclaiming that therecent economic growth is largelyinconsistent.
Therefore, the inconsistency shouldnot merit an interest rate hike.
Calling the "Rate HikeBluff"
Analyze
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Growth Indicators aresimply not showing signs of
fast enough growth
Describe02
Investors, including economists at GoldmanSachs believe that although Fed officials are
playing up the possibility of raising interest rates,the Fed will not raise interest rates this summer.
Goldman Sachs Economists:03
STRATEGIZINGWhat will the Fed really
do?
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Fed officials believe interest rate hikes should be appropriate if the economy continuedto improve, however they are divided on whether those conditions were to be met soon
enough.
Although unemployment is dropping, employment growth is not growing fast enoughfor many Federal Bank presidents.
WE'LL JUST HAVE TOWAIT UNTIL NEXT
MONTH TO FIND OUTFOR SURE
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Thanks for reading !
@NickFainlightNicholasFainlight.net