582 days ago
The Fed raises rates by 75 basis points and sees another 125 bps room until the end of the year. Moreover, the committee sees the terminal rate for this hiking cycle at 4.6%, up from 3.8% in the June dot plot. The dollar is roaring, while stocks and bonds are down following the release.
617 days ago
US stock-index futures fell as concerns over the Federal Reserve’s aggressive rate-hike path outweighed robust corporate earnings and China’s stimulus plans. The dollar and Treasury yields rose.
771 days ago
There were no big surprises for investors yesterday as the Fed delivered a 25bps hike and flagged six more increases throughout the year, an aggressive policy stance that essentially matches market estimates. The dollar rallied on the news, yet failed to maintain momentum. The spread between the 2 and the 10-year yields narrowed further, standing now at 0.2%, implying investors don't buy Fed's aggressive tightening plan. And this could be one of the reasons why the US dollar is lacking strength this morning. However, it is prudent not to get carried away. The greenback remains the ultimate safe-haven currency and more data is needed before one could assert a trend reversal.
