Fed expects rate increases in 2023

UK and European markets are expected to open higher this morning as investors wait for the outcome of the US Fed’s two-day meeting today.

Fed expects rate increases in 2023

The US Fed has brought forward the likely timing of interest rate increases. At the end of the two-day meeting the central bank left policy unchanged but signalled two rate hikes as early as 2023 and raised inflation expectations. In a press conference after the meeting, Chairman Jerome Powell tried to play the announcement down by saying the projections should be taken with a “big grain of salt”. However, stocks fell after the announcement, the dollar and US Treasury yields spiked and gold fell. UK and European markets are only slightly lower this morning and appear to be taking the announcement in their stride.

No indication was given on when the Fed’s bond-buying program might be cut back but Powell said “advanced notice” would be given before that happened.


Disclaimer:  ‘Where the business has expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. The information contained within this communication is believed to be reliable but Realm Investment Management Limited does not warrant its completeness or accuracy. This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’

Download Our Free Brochure