FOMC Meeting December 2022 HIGHLIGHTS: Fed slows pace of rate hike to 50 bps; brings funds rate at 4.25-4.5% range

Jerome Powell's Press Conference ends. This is all from the the big event. This is Shivendra Singh and I am signing off. Take care!

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Fed Chair Jerome Powell: Price stability has to be restored

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FOMC December Meeting 2022 - US Markets fall on Fed Guidance

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FOMC December Meeting 2022 - Jerome Powell LIVE now

Fed Chair Jerome Powell: Monetary Policy Committee rasise rate by half percentage points
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Fed Chair Jerome Powell: Modest growth in spending
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FOMC December Meeting 2022 Live Updates - Press Release

"Recent indicators point to modest growth in spending and production. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.

Russia's war against Ukraine is causing tremendous human and economic hardship. The war and related events are contributing to upward pressure on inflation and are weighing on global economic activity. The Committee is highly attentive to inflation risks.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 4-1/4 to 4-1/2 percent. The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time. In determining the pace of future increases in the target range, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal Reserve's Balance Sheet that were issued in May. The Committee is strongly committed to returning inflation to its 2 percent objective.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on public health, labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lael Brainard; James Bullard; Susan M. Collins; Lisa D. Cook; Esther L. George; Philip N. Jefferson; Loretta J. Mester; and Christopher J. Waller.".

FOMC December Meeting 2022  - Expert Take!

“Ahead of the last FOMC meeting for CY22, markets have been positioned optimistic about the trajectory of inflation having turned decisively downward. Foreign flows have been supportive for the last 3 months and macro variables continue to support an extension of this trend into CY23 (India’s substantial growth differential to the rest of the world, cooling commodity prices, weakening dollar)," S. Hariharan, Head – Sales Trading, Emkay Global Financial Services said.

Banking sector has the most scope for upside earnings surprises in the ongoing quarter because of the lead-lag between repricing of assets vs liabilities, and benign credit costs, Hariharan said.

"Channel checks in smaller cities suggest meaningful down-trading in consumer goods and hence, one can expect volume growth for Consumer Staples to be weak despite a reasonably strong festive season," he opined.

Travel & hospitality sector is expected to lead earnings growth, and Cement sector is expected to show a bounce-back in profitability after a weak monsoon quarter, the Emkay analyst said.

"Foreign institutions are most under-weight on IT sector and recent commentary from HCL Tech and LTI-Mindtree have been cautious with regard to the demand environment," he added.

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

FOMC December Meeting 2022 LIVE UPDATES - Rupee Vs Dollar

As Fed is about announce policy rates and give a guidance on inflation and GDP, the announcement could have an impact on Dollar. How will that impact Indian Rupee? Expert Decodes!

“USDINR spot closed 34 paise lower at 82.46, on the back of lower than expected US CPI and hopes that Fed today will signal that rates will peak in Feb/march of next year around 5%. Rupee remains undervalued to its peers and if Fed sounds dovish, it can help Rupee appreciate towards 82.00/81.80 levels on spot. We expect a range of 81.80 and 82.80 on spot,” Anindya Banerjee, VP - Currency
Derivatives & Interest Rate Derivatives at Kotak Securities Ltd said.

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

FOMC Meeting December 2022 Live Updates - Indian and world markets

World shares are mixed ahead of a decision by the Federal Reserve on its final interest rate hike for the year.

London, Paris and Frankfurt declined while shares in Asia were higher. US futures edged lower and oil prices also fell.

Tokyo's Nikkei 225 advanced 0.7 per cent to 28,156.21 and the Hang Seng in Hong Kong added 0.4% to 19,673.45. South Korea's Kospi was up 1.1 per cent at 2,399.25.

The Shanghai Composite index was virtually unchanged, at 3,176.53.

In Australia, the S&P/ASX 200 gained 0.7 per cent to 7,251.30. India's Sensex gained 0.7% while the SET in Bangkok added 0.4 per cent.

A 7.1% US consumer price index reading for November has raised hopes that pressure on the economy may ease, with the Fed widely expected to raise its benchmark rate a half-point Wednesday, smaller than the past four hikes of three-quarters of a point.