Larry Samarz says that the federal reserve is in a difficult position with “stagnation shock” before FOMC’s decision: “This is what the customs tariff” is doing – Invesco QQQ TRUST, Series 1 (NASDAQ: QQQ), SPDR S & P 500 (Arca: Spy)
The former treasury minister Lawrence H. Summer He said that the central bank faces the “most difficult challenge” amid high prices and the lowest jobs. This comes as the Federal Reserve is scheduled to announce its decision on interest rates by Wednesday noon.
What happened: Larry Samarz The APEX Monetary Policy Authority, the Federal Reserve Open Market Committee (FOMC), expects to fix fixed prices on Wednesday in line with the market expectations.
CME Group’s Fedwatch tool It indicates nearly a certainty of uninterrupted interest rates in March by 99 %, with expectations turning into large price cuts in July with a possibility of 60 %+ and increasing to about 90 % in September.
He said: “This is what definitions do.”
“If you are the federal reserve, you cannot find out if you have gone to rest periods due to the increase in prices or speed due to the lost jobs. So I think the Fed Bank will not move interest rates. They will say they need more data while they are watching,” Sames said on the X.
This scenario describes as a “stagnation shock”, which has placed the federal reserve in a “difficult position”.
See also: Fed on standby mode, while Trump may be a cable? Analysts expect Jerome Powell to burn measuring an economic uncertainty
Why do it matter: With inflation near 2 % and increased economic certainty, analysts believe Jerome Powell You may go to a more measured approach.
“The expected tone of the Federal Reserve Chair, Jerome Powell, is likely to turn into one more measure, as it must cite the economic uncertainty – especially the uncertainty in the customs tariff,” he said. Eugenia MikolakFounder and CEO of B2PRIME group
Trump’s position in reference to the president’s amendment Donald TrumpThe management policies it led to support the markets outside the table, remained “Federal Reserve” in the preparation mode. “Trump’s position may be a cable, but the federal reserve position remains in a standing mode.” Edward YardiniYardini president research.
Earlier this month, while speaking at the University of Chicago Powell indicated that the Federal Reserve will maintain the current prices in a strong labor market and enlargement close to the goal, while emphasizing any rush to control prices.
Price work: the SPDR S & P 500 ETF TRUST spy and Investco QQQ TRust ETF QQqWhich follows the S&P 500 and NASDAQ 100 index, respectively, on Tuesday. The spy decreased by 1.08 % to $ 561.02, and QQQ also decreased 1.70 % to 474.54 dollars, according to what he said Benzinga Pro Data.
On Wednesday, the future of Dow Jones increased by 0.13 %, while S&P 500 and NASDAQ offer 0.19 % and 0.26 %, respectively.
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