FOMC meet: Countdown to the Fed: What the analysts say

Federal Reserve officials are due to issue new economic ... first hike to December 2022, from September 2023 at the beginning of the year. Nifty15,699.25142.6TubeInvestments1,588.6573.45DSPMidcapDirectPlan-Growth9.76% InvestNowDSPTaxSaverDirectPlan-Growth12.54% InvestNowEdelweissFlexiCapFundDirect-Growth12.21% InvestNowEdelweissSmallCapFundDirect-Growth27.17% InvestNowMarketWatchSearch+HomeETPrimeMarketsNewsIndustryRISEPoliticsWealthMutualFundsTechJobsOpinionNRIPanacheETNOWMoreCryptocurrencyByCryptoInfluencersCryptoPodcastCryptoMeetCryptoTVCryptoQ&AExpertSpeakStocksDonsofDalalStreetNewsLiveBlogRecosStockReportsPlusCandlestickScreenerEarningsStockScreenerPodcastMarketClassroomStockWatchMarketCalendarStockPriceQuotesIPOs/FPOsMarketsDataMarketMogulsExpertViewsTechnicalsTechnicalChartVisualizeScreenerCommoditiesViewsNewsOthersMenthaOilPreciousMetalsGoldMGoldSilverSilverMicroGoldPetalSilverMGoldGuineaOil&EnergyNaturalGasCrudeOilBaseMetalsAluminiumCopperZincNickelLeadPlantationRubberKapasCottonForexForexNewsCurrencyConverterBondsMoreStockGameChartMantraTechnicalsTradingGameWebinarsSitemapDefinitionsBusinessNews›Markets›Stocks›News›CountdowntotheFed:WhattheanalystssayCountdowntotheFed:WhattheanalystssaySECTIONSCountdowntotheFed:WhattheanalystssayReutersLastUpdated:Mar17,2021,09:03PMISTRateStoryShareFontSizeAbcSmallAbcMediumAbcLargeSavePrintCommentSynopsisFederalReserveofficialsareduetoissueneweconomicprojectionsonWednesday,withanupgradetoGDPgrowth.MarketspredicttheFedmaybeforcedtoactsoonerthanexpectedinraisingrates.Shutterstock.comBenchmark10-yearTreasuryyieldshavejumpedfrom0.953%atthebeginningoftheyearto1.67%onWednesday,inthemidstofthetwo-daypolicymeetingthatbeganonTuesday.RelatedS&P500andDowendatrecordhighsafterFedprojectsstrongereconomyFed’sdotplotmaybackupPowell’spatience:Decision-dayguideFOMCmeetachanceforFedtoembracethemarket'soptimismInvestorsarelaser-focusedonFederalReserveChairJeromePowellonWednesdayandcruciallythebondmarket'sreactiontothecentralbank'spolicy-settingcommitteemeeting,withbenchmarkU.S.Treasuryyieldsat13-monthhighs. FederalReserveofficialsareduetoissueneweconomicprojectionsonWednesday,withanupgradetoGDPgrowth.MarketspredicttheFedmaybeforcedtoactsoonerthanexpectedinraisingrates. Benchmark10-yearTreasuryyieldshavejumpedfrom0.953%atthebeginningoftheyearto1.67%onWednesday,inthemidstofthetwo-daypolicymeetingthatbeganonTuesday.TheriseinyieldsinrecentweekscameonoptimismabouttheeconomicrecoveryandastheUnitedStatesreadiednewfiscalstimulus. However,arapidriseinyieldscanripplethroughtootherassets,affectingeverythingfromtechandfinancialstockstothehousingmarket. InvestorshopingforactionfromtheFedtocaprisingyieldsonlonger-datedTreasuriesmaybedisappointed.WhilePowellhassaidheiswatchingrecentTreasurymarketvolatility,hebrushedoffconcernsthatthemoveupinyieldsmightspelltroublefortheFed. MORESTORIESFORYOU✕S&P500andDowendatrecordhighsafterFedprojectsstrongereconomyFed’sdotplotmaybackupPowell’spatience:Decision-dayguideFOMCmeetachanceforFedtoembracethemarket'soptimism«BacktorecommendationstoriesIdon'twanttoseethesestoriesbecauseTheyarenotrelevanttomeTheydisruptthereadingflowOthersSUBMIT HerearewhatanalystsaresayingastheFedmeets: MIZUHOSECURITIESUSA “Thereisariskthatthemarketswillagainbedisappointedbythepost-meetingpolicystatement,"wroteStevenRicchiuto,U.S.chiefeconomistatMizuhoSecuritiesUSALLC. “TheFed’snewoperatingprocedureoftargetingmaximumemploymenttofinallyachieveits2%averageinflationtargetisdesignedtoseeinflationexpectationsandlong-termratesrise.Thismeanspolicymakersaresupportiveofrecentmarketdevelopments,i.e.risinglong-termrates,”hewrote. RABOBANK "Therisksare...thatlongyieldsreactfurthertoallthis“runninghot,”wroteMichaelEvery,seniormacrostrategist,Rabobank.Even"amoderatemovehigherinyieldscouldbepainful–andnotjusttobonds,"Everywrote. ING "BondinvestorswillbewaryofperceptionsthattheFedcouldpotentiallyallowtheeconomytoruntoohotfortoolong,"wroteJamesKnightley,PadhraicGarveyandChrisTurner,atING,notingthatinflationis"settoacceleratetowellabove3%. HSBCSECURITIES "WeexpecttheFOMC’seconomicandrateprojectionswillbeinlinewiththebondmarket’sexpectations,"wroteLawrenceDyer,headofU.S.ratesstrategyandShreySinghal,fixedincomestrategist."And,wedonotexpecttheFOMCstatementorpressconferencetoprovidepushbacktotherecentincreaseinyields.Thus,thereshouldbeamoderatemarketreactiontotheannouncementandpressconference." STANDARDCHARTEREDBANK “WethinktheFOMCwillhaveahardtimeexpressingconcernaboutassetmarkets,”wroteSteveEnglanderandJohnDaviesatStandardChartered,whileaddingthatiftheFed'spolicy-settingcommitteeandPowelldonot"pushbackagainstcurrentyieldlevels,investorsarelikelytotakeyieldshigherasbetterdataarrives." NATWESTMARKETS “Broaderfinancialconditionsremaineasy,andluckilyfor(Powell)theU.S.ratesmarketjustgotthroughaweekoflongsupplyrelativelyunscathed,atleastuntilFriday,andFriday'smovedidnotnegativelyimpactrisk,”wroteJohnBriggsglobalheadofstrategy,NatWestMarkets. "WhatIdoexpectisforPowelltopushbackagainsttherecentriseinthefrontend,dotmoveornot,whichhaspushedmarketpricingforthefirsthiketoDecember2022,fromSeptember2023atthebeginningoftheyear." BANKOFAMERICA"TheFedlikelyhopesmarketpricingisright,sinceitimpliesafasterrecoveryandmorerapidattainmentofitsinflationandemploymentgoals,"wroteMichelleMeyer,MarkCabana,BenRandol,MeghanSwiberandStephenJuneauatBankofAmerica. "Powellislikelytoreiteratethathigherratesareconsistentwithare-pricingoffundamentals...Limitedpushbackonratehikepricingwillalsolikelybeadisappointmentforthoseexpectingacontinuedultra-dovishFed,supportinghigherbellyrates." Intermediate-datednotes,knownasthe“belly”oftheTreasurycurve,aremoresensitivetorateincreases. Readthenow!IndulgeindigitalreadingexperienceofETnewspaperexactlyasitis.ReadNowReadMoreNewsonFOMCmeetFedFederalReserveChairbankofamericaJeromePowellTreasuryyieldsFOMC(What'smovingSensexandNiftyTracklatestmarketnews,stocktipsandexpertadviceonETMarkets.Also,ETMarkets.comisnowonTelegram.Forfastestnewsalertsonfinancialmarkets,investmentstrategiesandstocksalerts,subscribetoourTelegramfeeds.)DownloadTheEconomicTimesNewsApptogetDailyMarketUpdates&LiveBusinessNews....morelessPickthebeststocksforyourself Poweredby CheckoutwhichNifty50stocksanalystsrecommendbuyingthisweek4minsreadBankstocksthatcanrallyatleast20%inthenearterm3minsreadCheckoutwhichNifty50stocksanalystsrecommendbuyingthisweek6minsreadMidcapstockswithhighupsidepotential:StockReportsPlus4minsreadBankstockshavingmorethan20%upsidepotentialaccordingtoanalysts3minsreadCheckoutwhichNifty50stocksanalystsrecommendbuyingthisweek5minsread5stockswithconsistentscoreimprovementandupsidepotentialofupto41%5minsreadWeeklyTopPicks:Stocksthatscored10on10onStockReportsPlus8minsread ViewMoreStories SubscribetoETPrimePleasewait...AsktheCryptoExpert PresentedBy JigarMistryCo-Founder&Director,BuoyantCapitalTaaranChananaMDandCo-Founder,MemeChatPratikGauriFounder&CEO,5ireAndyRosenStaffWriter,NerdWalletArijitMukherjeeFounder,YunometaDarshanBathijaCEOandCo-Founder,VauldBhagabanBeheraCEOandCo-Founder,DefySiddharthJaiswalFounder&CEO,SportZchainProvidevalidqueryhereMax.characters:1000nextProvidevalidNameProvidevalidEmailIDProvidevalidMobileNumberIagreewiththeProgramT&C,PrivacyPolicy,TermsofuseandforsharingmydetailswiththepartnerofthisprogramSubmitYourqueryhasbeensubmitted.GotmoreQueries?AllQuestionsMUSTKNOWALLQUESTIONSPopularinMarketsMktbouncesbackbutINRfalls:Signofcurrencyappreciation?Howdobillionairesbuildportfolio?Hereare7investmentmantrasFIIflowandF&OexpiryamongkeydriversforstockmarketthisweekMcapof9oftop-10valuedfirmsjumpsRs2.51lakhcrSmall&midcapscouldseeprolongedphaseofpain:DuaDiscoverMutualFundsAllMutualFundsTopTaxSavingMutualFundsBetterThanFixedDepositsLowCostHighReturnFundsBestHybridFundsBestLargeCapFundsSIP’sstartingRs.500TopPerformingMidCapsPromisingMultiCapFundsTopRatedFundsTopPerformingIndexFundsMostPopularOpinionDude,doyoureallyhavetoOTTalk?BySoumyaBhattacharyaMindyourlanguage,andofotherstooByJugSuraiyaApeepalinourparkhasadogspiritinitByJAIARJUNSINGHRakeshJhunjhunwalaStockStockPortfolioVodafoneIdeaSharePriceGoldPriceTodayCryptoPriceTodayLiveSensexTodayLIVECryptocurrencyStockScreenerSensexStockMarketStockRecommendationsIPOUpcomingIPOGoldRateTopGainersRupeevsDollarShareMarketSilverPriceNifty50NiftyBankInfosysSharePriceCrudeOilPriceGrowthatReasonablePriceRIL2500.051.42%Infosys1441.10-0.78%Wipro418.75-0.07%ONGC137.351.89%HighDividendYieldCastrolIndia102.40-0.68%PhillipsCarbon105.200.00%SchaefflerIndia2183.701.43%CosmoFilms959.653.91%Mid-capGrowthStocksSaregamaIndia363.30-0.15%TataInvestment1299.101.97%SonataSoftware669.552.00%APLApolloTube882.951.94%AttractiveBluechipsVedanta221.450.91%NMDC107.552.43%SAIL68.001.12%CoalIndiaLtd176.55-0.34%Whyfollowtips?Chooseyourwinnersrationallyin3simplesteps!StartNowBrowseCompanies:ABCDEFGHIJKLMNOPQRSTUVWXYZ123456789ChooseyourreasonbelowandclickontheReportbutton.ThiswillalertourmoderatorstotakeactionNameReasonforreporting:FoullanguageSlanderousIncitinghatredagainstacertaincommunityOthersYourReasonhasbeenReportedtotheadmin.XTopostthiscommentyoumustLogIn/Connectwith:TheEconomicTimesorFillinyourdetails:WillbedisplayedWillnotbedisplayedWillbedisplayedSharethisComment:PosttoTwitterStoriesyoumightbeinterestedinSubscribetoourETInvestmentOpportunitiesSUBMIT