- On Wednesday, US stocks rose as investors prepared for the Fed’s interest rate decision.
- To control inflation, Chairman Jerome Powell will likely raise rates by 75 basis point.
- Investors will be able to see more from Powell’s press briefing about how much tightening may occur in the coming year-end.
The Federal Reserve expected to raise interest rates for the fifth consecutive year on Wednesday, which was why stocks in the US rose on Wednesday
Fed Chairman Jerome Powell will likely raise rates by 75 basis point, but some argue otherwise. He should increase them by at least 100 basis pointsIn an aggressive effort to contain inflation
August’s Hot CPI ReportInflation remains volatile means that investors will pay attention to Powell’s briefing at 2:30 pm. ET. In which Powell is expected to provide information about how many rate increases we can expect from the Fed heading into the end year.
Current market expectationsThe Fed is expected to raise its rate by 75 basis points at its November FOMC Meeting, and then by 50 basis points at its December FOMC Meeting. This would mean that the fed funds rate would be between 4.25% to 4.50%. It was at 0% to 0.25% at the beginning of the year.
Here are the US indexes shortly after the 9:30 AM. ET opened on Wednesday
Here’s more:
Commodities, bonds, and crypto
- West Texas Intermediate crudeOil prices rose by 1.62%, to $85.30/barrel Brent crudeOil’s international benchmark rose by 1.66% to $92.12.
- GoldThe price of an ounce rose by 0.63% to $1681.60
- The 10-year Treasury yield fell 1 basis point to 3.55%.
- Bitcoin rose 1.45% and reached $19,304. Ethereum, however, climbed 1.38% to 1,355.
