fbpx

PU Prime App

Exclusive deals on mobile

  • Market Insights  >  Weekly Outlook

24 November 2022,03:24

Weekly Outlook

FOMC Minutes Point to Less Hawks Decisions

24 November 2022, 03:24

Share on:
FacebookLinkedInTwitterShare
Share on:
FacebookLinkedInTwitterShare

On Wednesday, 24 November (GMT+2), the Federal Open Market Committee (FOMC) released the minutes of its 1-2 November meeting. Reflecting statements multiple officials have made over the last several weeks, the meeting summary concluded that a substantial majority of the Monetary Policy Committee (MPC) agreed it would probably moderate the pace of interest rate hikes. Several policymakers had also expressed concern about risks to the financial system if the Fed continues with its aggressive hiking pace.

Despite several Monetary Policy Committee (MPC) hinting that less severe restrictive monetary policy was ahead, the officials still see few signs of inflation stabilizing. The meeting minutes indicated that the policymakers would continue to monitor the economic situation in the United States to reassess the impact of the succession of rate hikes. The Federal Reserve’s next monetary policy meeting will be held on 14 December 2022.

Post-Market

The Greenback dipped across the board while three of Wall Street’s major indexes ended with solid gains over the backdrop of the FOMC meeting minutes, indicating that most central bank policymakers are more tilted toward a less aggressive tightening policy.

As of writing, the Dollar Index depreciated by 0.15% to 105.90 after Treasury yields eased with fading hopes upon the aggressive rate hike from the Fed. Investors expected the Fed minutes would continue to affirm officials’ softening stance in future as the recent data had shown a pessimistic outlook in economic conditions. 

US Initial Jobless Claims increased to a three-month high last week as rising layoffs in the technology sector. According to the Department of Labour, the US Initial Jobless Claims rose the most since June to 240K, worse than the market forecast of 225K. 

On the inflation front, the US Consumer Price Index in October only increased by 7.7% from a year ago, its lowest reading since January. Meanwhile, the US Producer Price Index had also stepped down in October by more than expected. Inflation data lately has been indicating some encouraging signs, despite remaining well above the central bank’s 2% official target. 

Speculations from traders of a 50-basis point hike during the Fed’s next meeting climbed to around 80%, according to CME Group’s FedWatch tool. Recent pessimistic economic data have provided some bearish bias for the US Dollar, which may continue going forward on the condition that the economic performance in the United States continues to underperform the market expectations.

Eyes are now on the Fed interest rate decision in future, and investors are advised to pay close attention to the upcoming FOMC meeting, which will be held on 14 December, 21:00 (GMT+2). As a friendly reminder, keep an eye on market changes, control your positions, and manage your risk well.

Bắt đầu Giao dịch với lợi thế

Giao dịch ngoại hối, chỉ số, Kim loại,...với phí chênh lệch thấp trong ngành và khớp lệnh nhanh như chớp

  • Bắt đầu giao dịch với số tiền nạp thấp nhất là $50 cho tài khoản Standard của chúng tôi.
  • Hỗ trợ 24/7.
  • Truy cập hàng trăm công cụ, công cụ giáo dục miễn phí và một số chương trình khuyến mãi tốt nhất xung quanh.
Tham gia ngay

Latest Posts

Mở tài khoản nhanh chóng và dễ dàng

Tạo tài khoản Live
  • 1

    Đăng ký

    Đăng ký Tài khoản Live PU Prime với quy trình đơn giản của chúng tôi

  • 2

    Nạp tiền

    Dễ dàng nạp tiền vào tài khoản của bạn với nhiều kênh nạp tiền và loại tiền tệ được chấp nhận

  • 3

    Bắt đầu Giao dịch

    Truy cập hàng trăm công cụ trong điều kiện giao dịch hàng đầu thị trường