ICYMI – Goldman Sachs Now Expects a 75bps Federal Reserve Rate Hike This Week

I posted this weekend on the Federal Reserve

Federal Reserve

The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks around the world, the Fed is responsible for monetary policy, in this case in the United States. The Fed is one of the most watched and followed entities for forex traders, given its large impact on the US dollar. Originally founded in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the United States while strengthening a financial system for the country. Its general functions are to set and guide monetary policy and oversee the efficient functioning of the economy, both of which serve the public interest. by the Federal Reserve Board of Governors. The current interest rate and expectations of future interest rate changes can influence the value of the US dollar. For example, if traders anticipate a change in interest rates based on announcements from the Board of Governors, this may cause the US dollar to appreciate or depreciate against other currencies. Forex traders should always be aware of Fed meetings and announcements and should follow developments within the central bank. Ultimately, the Federal Open Market Committee (FOMC) holds eight regular meetings per calendar year, where policies and interest rates are discussed and agreed upon. The best course of action is to stay on top of the news ahead of these meetings as a forex trader to make predictions on interest rates and whether to buy or sell the US dollar.

The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks around the world, the Fed is responsible for monetary policy, in this case in the United States. The Fed is one of the most watched and followed entities for forex traders, given its large impact on the US dollar. Originally founded in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the United States while strengthening a financial system for the country. Its general functions are to set and guide monetary policy and oversee the efficient functioning of the economy, both of which serve the public interest. by the Federal Reserve Board of Governors. The current interest rate and expectations of future interest rate changes can influence the value of the US dollar. For example, if traders anticipate a change in interest rates based on announcements from the Board of Governors, this may cause the US dollar to appreciate or depreciate against other currencies. Forex traders should always be aware of Fed meetings and announcements and should follow developments within the central bank. Ultimately, the Federal Open Market Committee (FOMC) holds eight regular meetings per calendar year, where policies and interest rates are discussed and agreed upon. The best course of action is to stay on top of the news ahead of these meetings as a forex trader to make predictions on interest rates and whether to buy or sell the US dollar.
Read this termICYMI:

Goldman Sachs on the US Economy – More Aggressive Fed, Higher Unemployment, Weaker Growth

Goldman Sachs has revised its forecast for next week’s Federal Open Market Committee (FOMC) meeting. GS expects the FOMC to rise 75 basis points from 50 basis points previously.

  • “We expect the FOMC to deliver a third rate hike of 75 basis points at its September meeting, taking the funds rate to 3-3.25%. The bond market is pricing a one in four chance of d up 100 bps.
  • “We expect the midpoint to show the funds rate at 4-4.25% at the end of 2022, further up to a high of 4.25-4.5% in 2023, down in 2024. Some FOMC participants will likely see forecast cuts as counterproductive after pleading with the bond market in August.
  • sees an increase of 50 basis points in November
    sees an increase of 50 basis points in December
    sees the fed funds rate peak at 4-4.25% by the end of 2022

The Federal Open Market Committee meeting takes place this week, with the statement scheduled for Wednesday, September 21 at 6:00 p.m. GMT and Chairman Powell’s press conference to follow half an hour later.

This snapshot of the ForexLive economic data calendar, access it here.

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