Page 24 - Fomc News Today

The ringgit is likely to stay at the current level against the US dollar, at 4.60 to 4.61, as monetary policy action will continue to take centre stage with a series of US Federal Reserve (Fed) officials sharing their thoughts with the public.

As expected, the Fed "paused" after 10 straight rate hikes. They characterized this as a “skip,” not a “pause.

A senior Fed official said the fallout from bank failures is likely to continue to play a role in the central bank's decision on when to raise interest rates.

That the economy and markets can absorb it more gradually, so that they can keep the path to a soft landing still alive. the last time we spoke was last month and there was a banking crisis that was going on. where do we stand? how much of that are they still considering, the fed? i think this remains something that they monitor very closely. we they also have the treasury general account rebuild this summer, which means there will be some liquidity being drained out of the financial system here...

Those "holding out for wider yields or relative value" are frustrated due to an extremely tight muni range, but FHN Financial's Kim Olsan said, "the reality is that supply has yet to materialize to force that change."

The market is cautious and closely monitoring any signals from the Fed regarding monetary policy and potential rate hikes.

The Federal Reserve announced Wednesday that it is pausing its interest rate hikes, showing that officials believe they are having success in bringing down inflation.

U.S. is on track to grow faster this year than the Federal Reserve previously forecast, leaving inflation disappointingly high and auguring more rate hikes.

Munis did not follow USTs yet, "but given the outperformance of munis over the last couple days and while I wouldn't be surprised if they weaken a little given how expensive ratios are," said Breckinridge's Matt Buscone.

For the first time in more than a year, the Federal Reserve has left interest rates unchanged but ...