The Fed Could Have Another Dilemma With Today’s Inflation Report

Mar 14, 2023

https://liquidity-provider.com/app/uploads/2023/03/14.03_todays-inflation-report-1.jpg

According to economists surveyed by FactSet, the CPI will rise by 6% year over year in February, down from 6.4% in January, and prices will expand by 0.4% over the prior month as opposed to 0.5% in January.

An analyst at broker XM named Charalampos Pissouros claimed that a significant decline in the headline CPI rate is out of the ordinary given the continued decline in oil prices year over year.

Core CPI, which does not include volatile food and energy prices, probably decreased from 5.6% in January to 5.5% last month.

Pissouros stated that market players might feel more confident about the most recent adjustment in their Fed bets should the core rate decrease by more than anticipated.

Economists expectations for the next rate action by the U.S. central bank are represented by those bets. In contrast to a 50-basis-point hike in December and numerous 75-basis-point increases last year, the Fed increased rates by 25 basis points in February. (One-hundredth of a basis point is a percentage point.)

https://liquidity-provider.com/app/uploads/2023/03/x-1.png

A significant stock market selloff that started in February after equities rose in January was aided by the increase in interest rates during the previous 12 months.

Traders' predictions for the next rate decision were divided before last Friday's failure of Silicon Valley Bank and regulatory actions to guarantee depositors and launch a new lending facility for banks. Some predicted a 50 basis point increase, while others thought it would be 25 basis points.

It is still unclear if the Fed would raise rates at all or announce a halt to its monthly quantitative tightening program, according to Quincy Krosby, the chief global strategist at LPL Financial. She said the Fed might take both actions.

According to the CME FedWatch Tool, the futures market was pricing in a 35% likelihood that the Fed will not adjust interest rates next week and a 65% chance that it will rise by 25 basis points. A half-point increase in interest rates is ruled out.

The recent rapid spike in interest rates has left Silicon Valley Bank with significant unrealized losses on its bond portfolio, which includes mortgage-backed securities. Depositors fled when the bank was compelled to liquidate part of its holdings, resulting in a $1.8 billion loss.

As James Reid, a strategist at Deutsche Bank, the environment ahead of tomorrow's CPI is intriguing. That's an understatement for sure.

Subscribe Our Newsletter

One of America's Youngest Billionaires Details His Big Financial Mistake
One of America’s Youngest Billionaires Details His Biggest Financial Mistake

Sam Bankman-Fried may have made his wealth by starting crypto exchange FTX, but he is still learning about some elements of the industry. Indeed, according to Yahoo Finance, the 29-year-old billionaire's worst financial blunder was waiting too long to enter the crypto craze.

Banks and Finance
MicroStrategy Continues Bitcoin Investments Despite Falling Stock Prices

Tamta

MicroStrategy Continues Bitcoin Investments Despite Falling Stock Prices

MicroStrategy remains committed to Bitcoin investments, acquiring more despite falling stock prices and an increasingly intertwined financial future.

Crypto
Alexander

Stop Vs. Stop-Limit Order: How Do They Differ?
Stop-loss (sometimes also known as stop orders) and stop-limit orders are two common tools used by day traders to manage risk when dealing with assets of any kind – stocks, crypto, Forex, commodities, and many more.

discover
What Is ChatGPT, And How Can You Use It?

Tamta

What Is ChatGPT, And How Can You Use It?

Artificial Intelligence (AI) has been gradually waving into our daily lives for ages. For instance, Gmail's helpful phrase suggestions or our smartphones' autocorrect features are examples of AI work. However, AI's integration into our lives has never been as profound as today. A major reason for the increasing hype is the introduction of ChatGPT.

Fintech

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries b2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Alexander

    Is IUL a Good Investment Strategy? — A Guide for Beginner Investors

    Is IUL a Good Investment Strategy?

    Alexander

    Are Crypto Wallets Safe? — Tips to Ensure Maximum Protection of Your Digital Assets.

    Tips to Ensure Maximum Protection of Your Digital Assets

    Alexander

    Roth IRA Guide: What It Is and What You Need to Know.

    Roth IRA Guide: What It Is and What You Need to Know

    Alexander

    From Gold to Index Funds and Crypto: Where to Invest in 2023 for Long Term?

    From Gold to Index Funds and Crypto: Where to Invest in 2023

    Alexander

    Understanding Algorithmic Trading: A Guide for Beginners

    Understanding Algorithmic Trading: A Guide

    Alexander

    Stop Vs. Stop-Limit Order: How Do They Differ?

    Stop Vs. Stop-Limit Order: How Do They Differ

    Alexander

    Invest in the Intelligent Future: The Best AI Stock Market Leaders of 2023

    Invest in the Intelligent Future: The Best AI Stock Market Leaders of 2023

    Deborah Middleton

    How MEC Rules Can Impact Your Life Insurance Policy

    How MEC Rules Can Impact Your Life Insurance Policy.

    Deborah Middleton

    Navigating the Ethical Landscape of AI: Challenges and Solutions

    Navigating the Ethical Landscape of AI: Challenges and Solutions

    Deborah Middleton

    Managing Your Financials The Right Way – A Startup Guide 

    Managing Your Financials The Right Way - A Startup Guide

    Anna

    A Beginner Guide To The Crypto Analysis Tools.

    A Beginner Guide To The Crypto Analysis Tools.

    Anna

    A Brief Introduction to Scalping

    A Brief Introduction to Scalping.

    Anna

    How to Invest in Stocks: A Beginner’s Guide

    How to Invest in Stocks: A Beginner’s Guide

    Anna

    Tips On Finding Crypto Liquidity Providers In 2023

    Tips On Finding Crypto Liquidity Providers In 2023.

    Anna

    Forex Liquidity in 6 Questions and Tips on How to Become Successful in Trading

    Forex Liquidity in 6 Questions and Tips on How to Become Successful in Trading

    Anna

    A Brief and Comprehensive Guide to Spot Trading.

    A Brief and Comprehensive Guide to Spot Trading.

    Anna

    What is The Difference Between Liquidity Provider and Liquidity Aggregator?

    What is The Difference Between Liquidity Provider and Liquidity Aggregator?

    Tamta

    What Is SWIFT Banking System?

    What Is SWIFT Banking System?

    Tamta

    How Liquidity Providers Drive The Foreign Exchange Market

    How Liquidity Providers Drive The Foreign Exchange Market

    Tamta

    How to Start Investing In Crypto

    How to Start Investing In Crypto

    Tamta

    5 Best Crypto CFD Liquidity Providers 2023

    5 Best Crypto CFD Liquidity Providers 2023.

    Tamta

    The Power Of Liquidity For Crypto Exchanges

    The Power Of Liquidity For Crypto Exchanges

    Tamta

    Institutional Forex Liquidity Explained: Why Do We Need It?

    Institutional Forex Liquidity Explained: Why Do We Need It?

    Tamta

    What Is Return On Investment (ROI), And How Can You Calculate It?

    What Is Return On Investment (ROI), And How Can You Calculate It?
    Latest News - Liquidity Provider: Business & FinTech Media
    • News
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
    [email protected]

    © 2023 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site.