Page 52 - Us Fed News Today

The recent banking crisis in the US appears to have resulted in tighter credit conditions and they are likely to hurt economic activities, said US Federal Reserve Chair Jerome Powell after the two-day monetary policy review meeting where it once again hiked interest rates in their pursuit of managing inflation.

The brokerage said IT remained at its top underweight. BofA also said it remained underweight on staples, discretionary and telecom sectors. It continues to favor financial, industrials, cement, steel and select auto (two wheelers), utilities and healthcare as defensive plays. BofA remained normal weight on the energy sector

The rate hike was a unanimous decision of the Fed’s committee members and largely in line with market expectations. The next Fed meeting is on 13-14 June.

The Fed started raising the federal funds rate in March 2022

Option data at the end of the day on May 3 suggests a number of hurdles for the index. At the same time support is also present as traders have not taken a definite view on it.

The focus of investors is now going to shift towards the federal reserve’s policy decision on the most recent rate hike and the commentary of the chairman Jerome Powell on the way forward for the US economy.

As widely expected, the U.S. Federal Reserved raised its benchmark interest rate by 25 basis points on Wednesday.

The Fed is aiming to bring inflation under 2 per cent and for that it has resorted to the fastest rate hikes in history, with nine increases since March 2023.

Volatility has reinforced asset allocation’s importance, investors should not ignore risk management, says Mehra

As widely expected, the U.S. Federal Reserved raised its benchmark interest rate by 25 basis points on Wednesday.