Expectations for US Federal Reserve interest rates
The dollar held steady near a two-decade high against other major currencies on Monday, with a number of central bank meetings, including one by the US Federal Reserve, likely to raise interest rates further. However, the dollar has maintained its strength, giving the Fed the expectation that it will keep track of its strong rate hike to keep pace with high inflation. US borrowing faster than expected after Tuesday’s data showed that core inflation was rising more than expected.
The Department of Labor reported that total consumer prices rose 0.1% last month from July – economists expected a decline – and up 8.3% from a year earlier. Shows the acceleration of inflation in services and a worrying increase in rents, which tend to increase from month to month, said Ron Temple, managing director at Lazard Asset Management. Rising housing prices are key to curbing inflation, “he said”.Instead, they are betting on a third consecutive 75-point rate hike that would bring the Fed’s current policy rate of 2.25% -2.5% to 3% -3.25% and have begun to set interest rates.
The peak at the beginning of next year is 4.25% -4.5%. Nomura economists wrote in a note that they also forecast that the Fed would raise its policy rate to 4.5. All clients can look forward to selling on the Nas 100 stock index at 11900, setting the stop-loss function at 12070 and the take-profit at 11400.