Global Market – US FED meeting outcome on 21-Sep-22
Before US CPI & Core CPI inflation data released on 13-Sep-22, there was probability playing on 50-bps & 75-bps and now Fed rate monitor tool is showing probability between by 75-bps & 100-bps.
Globally, financial market has not fully factored in 100-bps rate hike and on 21-Sep-22, if US FED increase rate by 100-bps there is negative reaction across assets classes.
US 2-year bond yield @ 3.90% inverting US 10-year bond yield – Indicating recession?
US 2-year bond yield inversion compared to 5-year & 10-year bond yield also increase the probability of recession in near term.
U.S. mortgage rates have doubled this year & have now climbed past 6% for the first time since November 2008.
Equichain Wealth Advisors – Market view & Opinion
We believe, US FED would increase rate by 75-bps which could provide relief rally in global asset classes. Any surprise moves to increase rate by 100-bps would send market another round of selling pressure across global asset classes.