![]() ![]() ![]() April's jobs report looms ahead, due out on Friday. ![]() Economic growth is also showing signs of slowing. Inflation has been on a cooling trend, with the March consumer price index rising 5% from a year ago – but it doesn't seem to be slowing at a pace that would appease the Fed. The real question that's bedeviling investors now is whether the central bank will indicate an end to its policy tightening or will it leave the door open for more interest rate increases to cool the economy.Ī multitude of factors will weigh into the policy-setting Federal Open Market Committee's next steps. The market is all but certain that the Federal Reserve will push forward a 25-basis point rate hike this afternoon, bringing its benchmark funds rate to 5% to 5.25%. "I think if the reporters get out of him to explicitly acknowledge that it's time to take a rate hiking break, he will do his best to reiterate that rates are not going to be cut like the fed funds futures market are pricing in," Boockvar continued. "But, as to be expected and certainly by the Fed funds futures market, it's just about time to call a time-out, which implies the game/fight against inflation is still ongoing but at least they can sit back and determine 'the extent to which additional policy firming may be appropriate to return inflation to 2% over time,'" Boockvar added. "They specifically repeated that 'The US banking system is sound and resilient'" Boockvar noted, adding that the central bank also reiterated that "tighter credit conditions for households and businesses are likely to weigh on economy activity, hiring, and inflation." Personal Loans for 670 Credit Score or Lowerīleakley Financial Group's chief investment officer Peter Boockvar said the Fed's Wednesday post-meeting statement hit much of the same points it did during the March meeting. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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