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Fed Rate Hike Outlook.pdf

1909734_1121 Where We Stand - Fed Announcement - Taper_f.pdf

🔗 Source: transamerica.com

📊 Size: 931 KB

📄 Pages: 2 pages

⬇️ Downloads: 51

Summary

The Federal Reserve has signaled the end of its peak accommodation cycle by announcing a reduction in open market asset purchases at a monthly pace of $15 billion, with markets focusing on when actual rate hikes might occur. Assuming monthly reductions continue, bond buying will reduce to zero by mid-2022, and the Fed is likely to begin raising the federal funds rate, potentially seeing two rate hikes by the end of 2022. The Fed will need to combat inflation with rate hikes, and long-term interest rates are likely to continue rising, with the 10-year Treasury bond yield potentially challenging 2% by early 2022. Despite the end of accommodative policy, a more inflation-focused Fed policy is likely to remain market-friendly, particularly if corporate earnings growth remains strong.

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Description

The Federal Reserve has signaled the end of its peak accommodation cycle by announcing a reduction in open market asset purchases at a monthly pace of $15...

Technical Information

File Format: PDF
File Size: 931 KB
Pages: 2
Language: EN
Total Downloads: 51
Last Updated: 1 week ago

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