FOMC Meeting December 2022 HIGHLIGHTS: Fed slows pace of rate hike to 50 bps; brings funds rate at 4.25-4.5% range
FOMC Meeting December 2022 HIGHLIGHTS: US Federal Reserve Chair Jerome Powell today announced policy rates even as the street watched keenly the guidance from Fed Chief on inflation, US GDP and unemployment rate
FOMC Meeting December 2022 HIGHLIGHTS: The Federal Reserve raised interest rates by half a percentage point on Wednesday and projected at least an additional 75 basis points of increases in borrowing costs by the end of 2023 as well as a rise in unemployment and a near stalling of economic growth, Reuters reported.
US Federal Reserve Chair Jerome Powell today announced policy rates even as the street watched keenly the guidance from Fed Chief on inflation, US GDP and unemployment rate.
Federal Reserve had on November 2 raised the rates by 75 basis points so as to maintain the federal funds rate in a target range of 3.75 to 4 per cent. This hike was the fourth consecutive rate increase undertaken by American Central Bank taking the effective rate hikes so far in 2022 to 375 bps. Fed increased rate by 75 bps on all four occasions.
The two-day meeting which ended today was followed by Powell's speech and media interaction.
You can catch all the announcements, full speech and the PC here along with impact on US and other major markets and reactions following the big event.
WATCH LIVE SPEECH HERE:
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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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FOMC December Meeting 2022 - Jerome Powell LIVE now
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Fed Chair Jerome Powell: activity in housing sector has slowed significantlyFOMC 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.
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.
FOMC Meeting December 200 Live Updates - Us markets cautious ahead of the announcements
US Markets were trading cautiously ahead of the announcements. Dow 30 was trading at 34,205.10, up 96.49 points or 0.28 per cent. S&P 500 was trading at 4,029.92, up 10.27 points or 0.26 percent. Meanwhile, Nasdaq Composite was trading at 11,273.10, higher by 16.29 points or 0.14 per cent.
Commodity LIVE - Gold, Silver futures on MCX
Tracking their global peers, Gold futures on MCX were trading positive. While February gold futures were trading at Rs 54911 per 10 gram and were up by Rs 779 or 1.44 per cent, March Silver futures were trading at Rs 69415 per kg and were up by Rs1629 and Rs 2.40 per cent.
Commodity LIVE - Gold, Silver, Crude Oil updates
Currency Markets - How top Global currency futures were trading
Source: Comex US Fed Policy LIVE UPDATES - Indian markets end on high note
Stock Market HIGHLIGHTS: Indian frontline indices S&P BSE Sensex and Nifty50 ended with strength on Tuesday tracking positive global cues. Sensex ended at 62,533.30, up 402.73 points or 0.65 per cent while Nifty50 settled at 18,610.40, up 113 points or 0.61 per cent. The strength was powered by bank and financial service stock. Nifty Bank today hit yet another lifetime high of 43,983.80 on the intraday basis.
Here are highlights from the day's action:
1) After a cautious opening, markets picked up momentum and widened their gains towards the end of today's session. Cues were positive for the Indian markets with US major indices closing with gains on Monday. US Federal Reserve is meeting today for the December Federal Open Market Committee Meeting (FOMC) and will announce policy rates on Wednesday along with forward guidance. A 50 bps points hike is expected.
2) In the 50-stock index, 34 advanced. The top gainers on Nifty50 were Indusind Bank, Bajaj Finance, Infosys, HCL Technologies and TCS while the top losers were UPL, Apollo Hospitals, BPCL, Nestle India and Hindalco Industries.
3) Bank Nifty ended at record high on the closing basis. The index widened its gains as the trading progressed. It settled at 43,946.55, up nearly 237.80 points or 0.54 per cent. 11 stocks in 12-share index closed in the green,
4) Out of 15 Nifty sectoral indices, 10 ended positive. The top gainers were Nifty PSU Bank (+3.81 per cent), Nifty Bank (+0.54 per cent) and Nifty Financial Services (+0.47 per cent). The major laggards were Nifty Realty (-0.80 per cent), Nifty Consumer Durables (-0.20 per cent) and Nifty FMCG (-0.15 per cent).
FOMC Meeting December 2022 - Bulls make merry on Wall Street
As Federal Reserve's FOMC meeting kicks-off today, a lower than estimated Consumer Price Inflation (CPI) core inflation numbers exalted the US stock markets. Frontline indices Dow 30, Nasdaq Composite and S&P 500 were trading with gains.
Source: Comex FOMC Meeting December 2022 - CPI Data
US CPI down from 0.4 per cent to 0.1 per cent (MoM) against estimated 0.3 per cent
US CPI down from 7.7 per cent to 7.1 per cent YoY against estimated 7.3 per cent
US November Core CPI doen from 0.3 per cent to 0.2 per cent (MoM) against estiated 0.3 per cent
US November core CPI down from 6.3 per cent to 6.0 per cent (YoY) estimated 6.1 per centFOMC Meeting December 2022 - US Markets end Tuesday on strong footing
US markets ended positive on Monday ahead of Federal Reserve's FOMC meeting which begins today. Dow 30 ended at 34,005, up 528.58 points or 1.58 per cent while S&P 500 closed at 3,990.56, up 56.18 points or 1.43 per cent. Nasdaq Composite 11,143.70, down 139.12 or 1.26 per cent.
Source: Comex Indian Markets on Monday - Recap
Stock Market HIGHLIGHTS: Indian benchmark indices S&P BSE Sensex and Nifty50 ended flat on Monday recovering from day's lows. Sensex which fell over 500 points in the opening trade closed at 62,130.57, down 51 points or 0.08 per cent. Nifty50 managed to finish in the green at 18,497.15, up just 0.55 points. Banking gauge - Nifty Bank ended at 43,708.75, up by 75.30 points or 0.17 per cent.
Currency Markets - Live Updates
Commodity Live - Gold, Silver, Crude Oil
Source: Comex US Markets LIVE- Dow 30, S&P 500, Nasdaq Composite
Source: Comex Source: Comex FOMC Meeting 2022 Live Updates - Expert Take
Federal Open Market Committee (FOMC) of the Federal Reserve will begin on Tuesday, 13 December where the US Central Bank is expected to raise interest rates by 50 bps. Market expert Ajay Bagga in chat with Zee Business Managing Editor Anil Singhvi said that the markets have priced in the impact of the interest rate hike.
The two-day meeting will be followed by a monetary policy speech by Chair Jerome Powell and a press conference.
FOMC Meeting 2022 Live Updates
Hi, this is Shivendra Kumar and I will bring to you all the top news and full LIVE event. Watch this space to know all the latest developments!
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