Practically no one expects the central bank to move its benchmark borrowing rate until at least September.
"They're going to be very careful. They attempted to do this in a stealth way, in my humble opinion, for political expediency," Shallet said. "I think that to start acknowledging that ... we're going to have to suspend the balance sheet expansion by the middle of the year, markets are not going to take that well."
"This is tricky terrain for Powell and if mishandled could be disruptive," Guha wrote. "That is why we expect only very cautious and limited comments for now, in particular given virus concerns, but see net downside risk on the day."There's also some expectation that the Fed could approve a rate hike, but not the kind that most people generally notice.
The reason is that the Fed uses the IOER as a guardrail for its benchmark funds rate. Over the past two years, the Fed has been cutting the IOER rate as the funds rate has moved to the top of its target band.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
A Perfect Storm: Coronavirus, Major Earnings Reports And An Overvalued Market Could Slam Investors This WeekAll three major indexes recorded their worst day in months.
Les mer »
A Perfect Storm: Coronavirus, Major Earnings Reports And An Overvalued Market Could Slam Investors This WeekCoronavirus, major earnings reports, and an overvalued market could slam investors this week—a perfect storm by skleb1234
Les mer »
Jeremy Siegel says the market pullback amid coronavirus fears is a welcome 'reality check''When you're priced like this, any little stone in the way, such as the coronavirus, you're going to get a stumble,' the Wharton School professor said.
Les mer »
'A true black swan' — stocks and oil slump as Wuhan coronavirus hammers markets - Business InsiderThe deadly virus has infected more than 2,700 people, killed 80, and spread to at least a dozen countries.
Les mer »