interest rate
Fed lowers benchmark rate to 4–4.25% as growth slows and inflation stays elevated
With the June FOMC meeting coming up, the Fed remains unlikely to cut interest rates. Is this the right move?
Timmer highlights how investors can prepare for a period of financial repression and generate returns in a high debt, low yield environment.
Stocks rebound after a disordered week where looming interest rate hikes curbed investors’ appetite for inflation-sensitive assets.
A strong dollar and deflationary pressures may have been this week’s downfall for commodities like gold. The US currency briefly reached a two-month high on Friday while gold slumped the lowest it has in over a month.
“(We) believe that the FED is only making the case for bitcoin stronger, as it doesn’t seem they’ve implemented any systems to curb inflation. This strengthens the idea behind a monetary system that can’t print dollars at will; the US has printed almost 25% of all circulating dollars in the last 16 months,” Michael Rabkin, head of institutional sales and global partnerships at DV Chain, wrote in a note to Blockworks.
Chair Jerome Powell announced that officials had begun discussing when to scale back $120 billion in monthly bond purchases, and released a ‘dot plot’ indicating two more interest rate hikes in 2023.