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Even as the Fed takes its break, it’s looking at a lot of the same things that prompted the Bank of Canada to get back on the rate-hike treadmill
In line with investor expectations, the Federal Reserve decided to pause its interest rate hike campaign at its June Federal Open Market Committee meeting. However, the Fed's Summary of Economic Projections indicates the central bank will pass another two rate hikes this year. The current interest rate target of 5% to 5.25% would reach the terminal rate of at least 5.5% to 5.75% by the year's end, according to the overwhelming majority of meeting participants.
While "munis are set up for better performance, perhaps modest single-digit returns, the near-term outlook for fund flows will make for a challenging read," Oppenheimer's Jeff Lipton said.
Bursa Malaysia is expected to see cautious trading this week ahead of an interest rate decision in the United States on Wednesday (June 14).
Cautious market sentiment is expected to influence the ringgit’s movement versus the US dollar this week, with external factors remain as the main culprit.