Fed speak is key to US equity returns this year | Ausbiz

Isaac Poole from Oreana Financial Services says the US Fed may wind up QE even faster than expected, however he is skeptical that three to four rate hikes are likely this year. Rather, he thinks the Fed is pressuring the market to prepare for tighter policy. Nevertheless, Isaac is confident that there are still strong equity returns to be found in the near to medium term, as long as the Fed continues communicating effectively. The FOMC meets this week, and Treasury yields have risen in anticipation of tighter policy, with those on the benchmark 10-year Treasury up 40 basis points from recent lows. Fed funds futures traders are fully pricing in a 25 basis point hike in March, in addition to three more rate increases by year-end. We also touch on China – and how its zero-COVID policy, and how further monetary easing will affect the nation’s growth.
(Source: Ausbiz)

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