Fed Hike Aftermath Series

Fed Hike Aftermath Series

Fed rate hike demonstrates investor's confidence in economy

Dec 17, 2015 15:40 pm UTC| Commentary Central Banks

The Federal Open Market Committee decided to raise interest rates by 25 basis points yesterday signaling the beginning of a gradual rate tightening policy. Markets across the world reacted positively to the news, U.S....

Fed Hike Aftermath Series

Economic and inflation outlook to determine Fed's further rate hike

Dec 17, 2015 12:51 pm UTC| Commentary

The U.S. Federal Reserve increased its target range for the fed funds rate by 25 base points yesterday. The Fed Chair Yellen indicated that the central bank is on the path of policy tightening, and it will increase its...

Fed Hike Aftermath Series

Pace of Fed tightening in 2016 will be faster than markets price-in

Dec 17, 2015 12:04 pm UTC| Insights & Views Central Banks

In what was a unanimous decision overnight, the US Federal Reserve raised its target range for the fed funds rate by 25 bps to 0.25-0.50%. The Feds rate hike was the first in nearly a decade, which puts an end to a...

Fed Hike Aftermath Series

FED hike aftermath series – Banks pass hike to consumers

Dec 17, 2015 11:37 am UTC| Commentary

JPMorgan has joined Wells Fargo in passing the additional cost, arising from US Federal Reserves rate hike yesterday to consumers by increasing the prime rate by similar amount, 25 basis points to 3.5%. However, both...

Fed Hike Aftermath Series

FED hike aftermath series – Probability check on next FED hike

Dec 17, 2015 11:17 am UTC| Commentary

With first rate indicating beginning of policy normalization, as FED hiked 25 basis points in yesterdays meeting, market focus will be on subsequent hikes. Overall market is predicting two more hikes next year. Lets...

Fed Hike Aftermath Series

FED hike aftermath series – stocks rise baffling bears

Dec 17, 2015 09:45 am UTC| Commentary

Bulls in the stock market just implied that they are not going to be dented by a mere 25 basis points rate hike, which the case should be, since FED policy is still very accommodative and going by FED chair Janet Yellen,...

Fed Hike Aftermath Series

FED hike aftermath series : FED projections – dovish or hawkish?

Dec 17, 2015 09:43 am UTC| Commentary

No major volatility swing after FOMC participants hiked 25 basis points in Federal funds rate as the move was well anticipated. Chair Yellen, also in her press conference, assured market of FEDs gradual progression over...