 "US Federal Reserve")
The Federal Reserve on Wednesday signaled it is likely to raise US interest rates in March and reaffirmed plans to end its bond purchases that month as well before launching what was characterized as a significant reduction in its asset holdings.
There’s a risk that the high inflation we’re seeing will be prolonged, there’s a risk that it will move even higher. We have to be in a position with our monetary policy to address all of those plausible outcomes
Jerome Powell, Chairman, US Federal Reserve
The stock market is especially vulnerable to higher rates and the removal of the tailwind that the Fed’s asset purchases have provided for the past two years
Chris Zaccarelli, CIO, Independent, Advisor Alliance
While rising rates are lik-ely to continue to press-ure highly valued parts of the equity market, we don’t see the Fed over-tightening and risking economy or a recession
Kerry Craig, Strategist, JPMorgan Asset Management
Fed rate hikes are coming, but the Fed is likely to ta-ke a measured approach to avoid sharp market declines in equity prices. This is less bearish for equity than some feared
Jason Schenker, President, Prestige Economics
The market is trying to get a better handle on how fast the Fed will let the size of the balance sheet run off as liquidity will then get pulled out of the market
David Sekera, Chief US market, strategist, Morningstar
The statement and particularly Powell’s presser were quite hawkish: opening the door to 50-bp hikes and possibly hiking at every meeting
Mike Schumacher, strategists Wells Fargo
The January FOMC meeting reinforces our view that the Fed will likely need to hike more than the market is currently pricing
Ethan Harris, Head of global economics at Bank of America Global Research
