Cookie Settings
Picture
Contatti
Picture

The Fed pauses, but hiking looks far from finished

In breve

The pause in rate hikes was widely expected and communicated, and over the past weeks there were strong hints to the possibility of new rate rises. What surprised in the June meeting was the possible extent of such an increase.

Highlights:

  • The FOMC paused rate hiking but delivered a very hawkish surprise by increasing by 50 bps its year-end target for the policy rate. It follows an upward revision of the short-term expectations for growth and above all core inflation. Despite little change in the economic projections for 2024 and 2025, the FOMC projects a higher policy rate also then.
  • In the Q&A session, chair Powell tried to reassure about the outlook for inflation and rates. The labour market is going back into balance and this will help disinflation, but the recent data show that price pressures remains too high and this is behind the almost unanimous decision to raise rates further.  
  • Powell conceded that the full impact of the past rate hikes and the banking stress have not been unfolded in full and how the economy will react remains uncertain. This latest hawkish turn, if implemented, will add further pressure to an economy that we see entering into a recession after the summer.
     

Download the full publication below

The Fed pauses, but hiking looks far from finished
Competenze
Investimenti Responsabili
Insights
Chi Siamo
Contatti
Picture
Picture

© Generali Investments, tutti i diritti riservati. Questo sito web è fornito da Generali Investments Holding S.p.A. in qualità di holding delle principali società di gestione del risparmio del Gruppo Generali che detengono, direttamente o indirettamente, la maggioranza delle partecipazioni nelle società sotto elencate (di seguito, congiuntamente, "Generali Investments"). Questo sito web può contenere informazioni relative all'attività delle seguenti società: Generali Asset Management S.p.A. Società di gestione del risparmio, Infranity, Sycomore Asset Management, Aperture Investors LLC (inclusa Aperture Investors UK Ltd), Plenisfer Investments S.p.A. Società di gestione del risparmio, Lumyna Investments Limited, Sosteneo S. p.A. Società di gestione del risparmio, Generali Real Estate S.p.A. Società di gestione del risparmio, Conning* e tra le sue controllate Global Evolution Asset Management A/S - incluse Global Evolution USA, LLC e Global Evolution Fund Management Singapore Pte. Ltd - Octagon Credit Investors, LLC, Pearlmark Real Estate, LLC e Generali Investments CEE. *Comprende Conning, Inc., Conning Asset Management Limited, Conning Asia Pacific Limited, Conning Investment Products, Inc. e Goodwin Capital Advisers, Inc. (collettivamente, "Conning").

Note Legali
Informativa Sui Cookie
Informativa Sulla Privacy
Termini e Condizioni
Copyright
Glossario