U.S. Fed Reserve Policy Preview — To Ease Up On Their Hawkish Rhetoric: Reliance Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Reliance Securities Report.The U.S. Fed hiked the interest rates by 25 basis points in February, as they felt it was appropriate to tackle high inflation. However, recent U.S Consumer Price Index this week reflected that the inflation was still high despite retail sales numbers eased, suggesting that the U.S. Fed will raise the interest rate further. Additionally, U.S. labour market remains tight after the recent spectacular non-farm data in the U.S. rekindled market concerns over Fed interest rate hikes. The non-farm sector added a surprising 517,000 jobs in January and 311,000 in February. In fact, briefly, there were suggestions that the Fed could do a 50-bps hike in March. However, that changed after the recent banking sector crisis. Many traders and other market participants speculated that the recent financial market crisis could also prompt the Fed to remain status quo on rates. The banking sector crisis started in the U.S. and spilled over to Europe as well. So, we expect the Fed to ease up on their hawkish rhetoric. They could hike by 25-bps in March and could change their stance to neutral and say that further rates could be data dependent..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

U.S. Fed Reserve Policy Preview — To Ease Up On Their Hawkish Rhetoric: Reliance Securities

They could hike by 25 bps in March and could change their stance to neutral and say that further rates could be data dependent.

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