Home / Economy / US Fed hikes interest rates Live Updates: ‘2023 could be good year for equities’

US Fed hikes interest rates Live Updates: ‘2023 could be good year for equities’

Federal Reserve Chair Jerome Powell. (REUTERS)Premium
Federal Reserve Chair Jerome Powell. (REUTERS)

  • US Fed Meeting Live Updates: Federal Reserve Chair Jerome Powell said that the US central bank could downshift on the size of its rate increases at its year-end policy meeting

The US Federal Reserve delivered their fourth straight 75 basis-point interest rate increase while also signalling their aggressive campaign to curtail inflation could be approaching its final phase. The unanimous decision lifts the target for the benchmark federal funds rate to a range of 3.75% to 4%, its highest level since 2008.

03 Nov 2022, 03:26:49 PM IST

2023 could be good year for equities: OmniScience Capital

“Mr Market was expecting the 0.75 percentage rate hike from the U.S. Fed which has shown determination to stay the course until the job's done. It looks like H1 2023 is going to see a level of 5-5.5% Fed funds rate and a real GDP of 0%-1%, but a nominal GDP of 6%-7% or so. This should not be confused with a bear market. Most likely by H1 2023 the markets will start looking beyond to the pause in the rate hikes and the eventual loosening to bring the Fed rate back to the neutral 2.25%-2.5%. Thus, 2023 could be quite bullish as soon as core PCE inflation rates look like they are moving below the 5 year treasury yields," said Vikas Gupta, CEO and Investment Strategist, OmniScience Capital.

03 Nov 2022, 02:14:05 PM IST

Outperformance of Indian stock markets to continue: Sanjiv Bhasin

IIFL Securities Director Sanjiv Bhasin expects the outperformance of Indian stock markets to continue. “Federal Reserve has lost credibility. They are speaking in different tones. Some members being dovish while the chairman being hawkish. FOMO (fear of missing out) is huge for foreign investors who are now buyers since last week. Retail flows are calling the shots. Expect the Fed news to get discounted by end of the day. New highs on the cards in November," Mr Bhasin said.

03 Nov 2022, 01:48:14 PM IST

Russian rouble slides past 62 vs dollar to over 2-week low

The Russian rouble hit a more than two-week low against the dollar in early trade on Thursday, as global oil prices slipped after the Federal Reserve raised interest rates and expectations of more tightening set the stage for further firming of the US currency.

03 Nov 2022, 01:45:06 PM IST

Banks, miners drag Australian shares lower as Fed sticks to hawkish tone

Australian shares closed lower on Thursday, after a hefty rate hike and hawkish messaging from the U.S. Federal Reserve startled global markets, with rate-sensitive banking stocks and domestic miners leading losses.

03 Nov 2022, 01:17:08 PM IST

Gold subdued as Fed's Powell sours pivot hopes

Gold prices were flat on Thursday, following a volatile session, as hopes of a pivot dissipated after U.S. Federal Reserve Chair Jerome Powell signalled further rise in borrowing costs.

Spot gold was flat at $1,635.42 per ounce, as of 0637 GMT, after falling 0.8% on Wednesday.

03 Nov 2022, 11:30:31 AM IST

Weary investors see little respite to Fed hike gloom

Investors trying to navigate this year's relentless interest rate rises have more reasons to play it safe, after a pessimistic message from the U.S. Federal Reserve clouded the outlook for asset prices.

03 Nov 2022, 11:11:43 AM IST

Hong Kong raises rates after Fed, flags more increases in borrowing costs

The Hong Kong Monetary Authority (HKMA) on Thursday raised its base rate charged via the overnight discount window by 75 basis points to 4.25%, and said households should brace for a period of higher commercial rates and carefully manage financial risks.

03 Nov 2022, 10:18:40 AM IST

Rupee falls 8 paise to 82.88 against US dollar

The rupee depreciated 8 paise to 82.88 against the US dollar in morning trade on Thursday after the US Federal Reserve raised interest rates and maintained a hawkish stance.

At the interbank foreign exchange, the domestic unit opened at 82.87 against the dollar, then lost further ground to quote at 82.88, registering a loss of 8 paise over its previous close.

03 Nov 2022, 10:15:13 AM IST

What Fed's new game plan means for Indian stock markets

Indian stock markets fell today, tracking a slide in Asian peers after US Federal Reserve chairman Jerome Powell overnight said that the US central bank would raise interest rates more than previously anticipated, sapping the risk appetite. The Fed raised rates 75 basis points for the fourth time in a row, bringing the top of its target range to 4%, the highest level since 2008.

03 Nov 2022, 09:11:29 AM IST

Copper eases on prolonged US policy tightening worries

Copper prices fell on Thursday as risk sentiment soured and demand outlook for metals dimmed due to prospects of protracted policy tightening by the US Federal Reserve.

03 Nov 2022, 08:32:17 AM IST

Rupee likely to weaken after Fed's Powell hints at higher peak rate

The Indian rupee is tipped to decline against the dollar on Thursday, after U.S. Federal Reserve Chair Jerome Powell noted that interest rate hikes might have to rise more than what was previously expected.

The rupee is expected to open at around 82.85-82.90 to the dollar, compared with 82.7800 in the previous session.

03 Nov 2022, 07:56:27 AM IST

Hawkish Fed seen as bad news for Asia stock and currency bulls

A more hawkish-than-expected Jerome Powell sent US stocks spiraling lower Wednesday and analysts expect more of the same for Asia Thursday. Higher-for-longer US interest rates are likely to impact growth in the region, weigh on stocks and put further pressure on currencies thanks to a strengthening dollar.

03 Nov 2022, 07:38:04 AM IST

Asian shares tumble as Powell primes further hikes

Asian stocks slumped after Jerome Powell said the Federal Reserve would raise interest rates more than previously anticipated, sapping risk appetite and sending global equities to their worst day in nearly a month.

03 Nov 2022, 07:37:12 AM IST

Sharp Yen swing has traders on watch for post-Fed Japan reaction

A sharp reversal in the yen in the wake of a hawkish Federal Reserve had currency traders on edge Thursday, with Japan on holiday and the threat of intervention still looming.

03 Nov 2022, 07:36:07 AM IST

Oil drops as more rate hikes overshadow tightening fuel market

Oil fell after Federal Reserve Chair Jerome Powell said interest rates will go higher than earlier projected, overshadowing tightening supply.

03 Nov 2022, 06:04:32 AM IST

Fed is still enemy No. 1 for Wall Street traders eyeing  bonds

Wall Street money managers looking to pile back into Treasuries after months of losses will have to contend with a Federal Reserve that stands ready to raise the stakes every step of the way.

03 Nov 2022, 05:43:12 AM IST

Hong Kong central bank raises interest rate after Fed move

The Hong Kong Monetary Authority (HKMA) on Thursday raised its base rate charged through the overnight discount window by 75 basis points to 4.25%, hours after the U.S. Federal Reserve delivered a rate hike of the same margin.

03 Nov 2022, 12:36:06 AM IST

Powell says will take time for rate hikes to bring inflation down

Fed Chair Powell said that it will take time for the central bank rate hikes to bring inflation down, and that will necessarily lead to slower US growth. While the housing market has slowed, "It will take time... for the full effects of monetary restraint to be realized, especially on inflation," he said, adding that the effort is "likely to require below-trend growth."

03 Nov 2022, 12:31:44 AM IST

Dollar slips after Fed seen tilting dovish following statement

The dollar slid broadly against major currencies after the Fed signalled that future interest rate increases to battle high inflation could be made in smaller increments.

03 Nov 2022, 12:27:57 AM IST

Powell says 'very premature' to consider pausing rate hikes

- It is premature to consider pausing

- If we don't get the inflation down, it will become entrenched

- We will update our estimate of where rates will need to go in December

03 Nov 2022, 12:19:17 AM IST

Fed to begin discussing slower rate hikes in Dec

Fed to begin discussing slower rate hikes in December: Jerome Powell

03 Nov 2022, 12:15:06 AM IST

Powell on when to moderate the pace of increases

Powell says: "The question of when to moderate the pace of increases is now much less important than the question of how high to raise rates and how long to keep monetary policy restrictive."

03 Nov 2022, 12:11:19 AM IST

Jerome Powell says

“The ultimate level of rates will be higher than previously expected"

03 Nov 2022, 12:07:27 AM IST

Powell elaborates more

- Demand far outnumbers supply

- The labour market remains extremely constrained

- US job openings remain plentiful

- The slower output growth is also putting pressure on business fixed investment

03 Nov 2022, 12:03:29 AM IST

Fed's Powell

“We are firmly committed to lowering inflation and we have resolve," says Fed Chair Jerome Powell.

03 Nov 2022, 12:00:19 AM IST

Wall Street turns higher after Fed hints at smaller hikes

The Dow Jones Industrial Average rose 220.81 points, or 0.68%, to 32,874.01, the S&P 500 gained 13.5 points, or 0.35%, to 3,869.6 and the Nasdaq Composite added 12.89 points, or 0.12%, to 10,903.73.

02 Nov 2022, 11:56:50 PM IST

Chair Jerome Powell to speak at press conference soon

US Federal Reserve Chair Jerome Powell will have a chance to elaborate on the outlook for future meetings at his press conference at 12:00 am (IST) in Washington.

02 Nov 2022, 11:49:22 PM IST

White House on Fed rate hike

White House press secretary Karine Jean-Pierre said the Fed's latest move to raise its benchmark interest rate will help to bring down inflation, and a rise in mortgage rates should cool inflation in the housing market.

02 Nov 2022, 11:48:15 PM IST

Key takeaways from Fed decision

- Fed hikes the federal funds target rate by 75 basis points for a fourth straight meeting to 3.75%-4% range

- Officials anticipate “ongoing increases" in borrowing costs but adds a qualifier saying they're aiming for tightening that's “sufficiently restrictive" to return inflation to 2% over time

Another big change to the statement is a new line with a signal that tightening is entering the final phase: “In determining the pace of future increases in the target range, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments"

- The decision is unanimous

02 Nov 2022, 11:41:30 PM IST

Stocks climb after Fed decision

Stocks erased losses as the Federal Reserve signaled its most-aggressive campaign since the 1980s to curb inflation could be entering its end phase, with traders now awaiting to hear more details from Chair Jerome Powell. The S&P 500 climbed.

02 Nov 2022, 11:39:50 PM IST

‘Ongoing increases’ will likely be needed to…

The Fed said that “ongoing increases" will likely be needed to bring rates to a level that is “sufficiently restrictive to return inflation to 2% over time".

02 Nov 2022, 11:33:50 PM IST

FOMC statement

The new language in the policy statement took note of the still-evolving impact that the Fed's rapid pace of rate hikes has set in motion, and a desire to hone in on a level for the federal funds rate "sufficiently restrictive to return inflation to 2% over time."

02 Nov 2022, 11:33:18 PM IST

Fed delivers big rate hike

The Federal Reserve on Wednesday raised interest rates by three-quarters of a percentage point as it continued to battle the worst outbreak of inflation in 40 years, but signaled future increases in borrowing costs could be made in smaller steps to account for the "cumulative tightening of monetary policy" it has enacted so far.

02 Nov 2022, 11:16:08 PM IST

Ex-Fed chief Greenspan sees dollar with 'tailwind' into 2023

Former Fed Chair Alan Greenspan sees a monetary “tailwind" for the dollar in the coming year even in the event that US monetary policymakers slow or halt their current interest-rate hiking campaign.

02 Nov 2022, 10:51:22 PM IST

50 or 75 bps rate hike in Dec

Traders are split on the odds of a 50 bps or 75 bps rate hike in December, according to CME Group's Fedwatch tool. The Fed's interest rate decision is due soon, but focus will be on commentary from Fed Chair Jerome Powell later.

02 Nov 2022, 10:48:20 PM IST

Megacap tech weighs on stocks

Stocks fell as data showed continued labor-market strength, with investors waiting to hear from Fed Chair Powell on whether it would be realistic to expect a slowdown in the pace of rate hikes going forward. The S&P 500 saw its third straight loss, while the tech-heavy Nasdaq 100 underperformed as big names like Apple and Tesla sold off. Boeing climbed after its chief’s bullish cash outlook.

02 Nov 2022, 10:40:53 PM IST

Euro zone govt bond yields tread water ahead of Fed

Euro zone government bond yields drifted higher, after US employment data tempered expectations for the central bank to signal it may not raise interest rates as quickly.

02 Nov 2022, 10:34:37 PM IST

Stocks slide before expected Fed hike

European and US stock markets slid today, with investors on edge before another widely expected jumbo interest rate hike from the US Federal Reserve. On Wall Street, the Dow was down 0.4% in midday trading, while the broader S&P 500 slid 0.8% and the tech-heavy Nasdaq slumped 1.3%.

02 Nov 2022, 10:02:25 PM IST

Broader market likely to remain somewhat subdued

The broader market is likely to remain somewhat subdued ahead of the Federal Reserve's post-meeting announcement at 11:30 pm today, when the central bank is expected to deliver its fourth, 75 basis points interest rate increase.

02 Nov 2022, 09:54:20 PM IST

Another mega interest rate hike is coming

The US should prepare their finances for even higher interest rates this year as the Fed continues its fight against inflation. Investors were also cautious ahead of the Federal Reserve's meeting on interest rates.

02 Nov 2022, 09:46:41 PM IST

US firms add 239,000 jobs, ADP says

Hiring at US companies rose in October by more than forecast, mainly reflecting a surge in leisure and hospitality and underscoring resilient labor demand despite the US Fed's efforts to cool the economy. Private payrolls rose 239,000 last month after a revised 192,000 gain in September, according to data from ADP Research Institute in collaboration with Stanford Digital Economy Lab.

02 Nov 2022, 09:39:36 PM IST

S&P 500 sees narrowest swings this year before Fed

A sense of caution was reflected in the S&P 500’s swings Wednesday – with the gauge currently on track for its narrowest range this year. Of course, things might change depending on the market reaction to the Federal Reserve's decision.

02 Nov 2022, 09:24:46 PM IST

8 of the same 10 central banks raised rates

By comparison, eight of the same 10 central banks raised rates by a combined total of 550 bps in September, the fastest pace of tightening in at least two decades. The latest moves have brought total rate hikes in 2022 from G10 central banks to 2,050 bps.

02 Nov 2022, 09:10:12 PM IST

Barclays and HSBC strategists warn

The stock market’s recent optimism looks misplaced with the rally too dependent on expectations the US Federal Reserve will drop hints that rate hikes will slow, according to strategists at Barclays Plc and HSBC Holdings Plc, who urge caution.

02 Nov 2022, 08:51:00 PM IST

Stocks fall, dollar eases broadly

Global stock indexes fell and the dollar was slightly lower against other major currencies. A Reuters poll found currency strategists thought the dollar's retreat was temporary.

02 Nov 2022, 08:47:52 PM IST

FOMC statement

The Federal Reserve is due to release its policy statement at 2 pm EDT (11:30 pm IST), but traders' focus will be on commentary from Fed Chair Jerome Powell later.

02 Nov 2022, 08:39:33 PM IST

Gold to rebound slightly next year as Fed tightening cycle ends

Gold prices will average $1,712.50 an ounce next year, rising from current levels. Gold has tumbled from above $2,000 an ounce in March to around $1,650 as the Fed and other central banks raised interest rates rapidly to tackle inflation.

02 Nov 2022, 08:23:43 PM IST

Oil avoids big moves

Oil remained near $88 a barrel, avoiding any large moves even as an industry report pointed to another sizable decline in US crude inventories. West Texas Intermediate futures were little changed after switching between gains and losses, with prices stuck in a $12 band over the last month. US crude stockpiles fell 3.12 million barrels last week, as per an Energy Information Administration report.

02 Nov 2022, 08:03:39 PM IST

Dollar eases across the board

The dollar slipped broadly today as investors awaited a Federal Reserve policy decision amid speculation it might signal a slowdown in the pace of future rate hikes. The euro was 0.11% higher against the dollar at $0.9885, while against the Japanese yen, the dollar fell 0.8% to 147.03 yen.

02 Nov 2022, 07:41:11 PM IST

US yields little changed before Fed statement

Treasury yields were little changed today hours before the US Fed is widely expected to raise its policy interest rate by 75 basis points amid market speculation the central bank may signal an easing of monetary tightening. The yield on benchmark 10-year Treasury notes was above 4%, while two-year yields, which typically moves in step with interest rate expectations, was above 4.5%.

02 Nov 2022, 07:31:53 PM IST

‘75 bps hike is not going to surprise anyone’

Market analyst Fawad Razaqzada at City Index and FOREX.com believe that a fourth consecutive 75 basis point rate hike will not surprise anyone, but the key question is whether the Fed will signal that it is ready to pivot to a less hawkish stance in its December and subsequent meetings

02 Nov 2022, 07:29:41 PM IST

Economists on rising rates

Economists fear that rising interest rates will spark a global economic downturn because they ramp up loan repayments for individuals and businesses, thereby denting consumer spending and investment.

02 Nov 2022, 07:16:51 PM IST

Stocks open lower on Wall Street

US stocks are opening modestly lower ahead of what traders expect will be another big interest rate increase from the Federal Reserve to fight the worst inflation in four decades. The S&P 500 was off 0.4%, as was the Dow Jones Industrial Average and the Nasdaq.

02 Nov 2022, 07:15:37 PM IST

Surging inflation

The central bank has been ramping up interest rates to cool demand and fight surging inflation, amid fears the strong labor market will cause a wage spiral.

02 Nov 2022, 07:06:57 PM IST

Oil steadies in rangebound trading

Oil traded near $88 a barrel before the US Fed’s latest interest rate decision and as an industry report pointed to another sizable decline in US crude inventories.

02 Nov 2022, 07:00:19 PM IST

Wall St in holding pattern ahead of Fed rate decision

US futures trading on Wall Street appeared to be in a holding pattern ahead of a decision by the Federal Reserve on an interest rate increase in its attempt to curb inflation. Futures for the Dow Jones industrials were unchanged and the S&P 500 rose less than 0.1%.

Download the App to get 14 days of unlimited access to Mint Premium absolutely free!

Recommended For You
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout