Original Content- Business Upside
Markets are cheering the fed rate hikes 2022 by 75 basis points announced at the end July. Soon after the Federal Reserve announced an interest rate increase 2022, stock markets regained their buoyancy as stocks rallied. The Tech-heavy NASDAQ index moved the most, and the fall in short-term treasury yields indicated an easing of the monetary policy anytime soon. The market reaction seems curious because the latest Fed decision about rate hikes 2022 did not involve deliberations among various stakeholders. Moreover, the Fed did not indicate a coming pivot from its aggressive approach.
How is the Market seeing the Fed Rate Hikes 2022? Instead of trying to delve deeper to understand the dynamics underlying the decision of interest rate increase 2022, the markets are happy to see what they want to see. From the data accumulation, it seems there could be a reason for Fed to ease off on the policy. The signals about inflation slowing down are pretty visible. Most commodities have slid down from their peaks, and the market appears to be bearish as prices are down by almost 20%. Michigan University’s consumer surveys painted an optimistic picture amid falling gasoline prices that could translate into a 2.8% decline in July inflation. In the second quarter, the gross domestic product fell by 0.9%, the second consecutive fall that hints at a recession in technical terms.
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