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investors assess monetary policy outlook


U.S. Treasury yields were little changed on Monday as investors weighed the Federal Reserve’s next interest rate decision and examined the outlook for the broader economy.

As of 4:13 a.m. ET, the yield on the benchmark 10-year Treasury note was virtually flat and last traded at around 3,4804%. The yield on the 2-year Treasury note fell just over one basis point to 4.1701%.

Output and price move in opposite directions. One basis point is equal to 0.01%.

Investors weigh future monetary policy decisions given the uncertainty over whether the Fed will raise interest rates by 25 or 50 basis points at its next meeting on January 31 and May 1. 2.

In recent weeks, Fed speakers have hinted that they will consider slowing rate hikes to 25 basis points. Some, including Fed Governor Christopher Waller, said it straight that they would favor a smaller increase.

It comes as both wholesale and customer Inflation figures for December fell on a monthly basis.

Many investors are hoping the central bank will slow down or halt rate hikes altogether this year. The pace of interest rate hikes announced by the Fed in its fight against high inflation has raised fears of a possible recession.

No important economic data is expected on Monday. As the week continues, investors will keep an eye on S&P Global’s purchasing managers’ index report on Tuesday, as well as GDP figures on Thursday and the personal consumption expenditures price index on Friday.

The latter is one of the Fed’s preferred inflation measures and can therefore inform the central bank’s next policy moves.

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