Hawks Are Circling Wall Street: Two Top Analysts Call For The Fed To Resume Hikes In July
Portfolio Pulse from Piero Cingari
Two major investment banks, Goldman Sachs and Bank of America, predict the Federal Reserve will resume hiking interest rates as soon as July. Goldman Sachs expects a peak fed funds rate of 5.25%-5.5%, while Bank of America anticipates two more rate hikes, reaching a terminal rate of 5.5%-5.75%.
June 15, 2023 | 4:26 pm
News sentiment analysis
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POSITIVE IMPACT
Bank of America remains modestly bullish on the U.S. dollar in the short-term, as the Fed’s hiking cycle continues. This may positively impact the Invesco DB USD Index Bullish Fund ETF (UUP).
As the Fed continues its hiking cycle, Bank of America remains modestly bullish on the U.S. dollar. This may lead to a positive impact on the Invesco DB USD Index Bullish Fund ETF (UUP) in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Goldman Sachs and Bank of America's predictions of resumed Fed rate hikes may negatively impact the iShares 20 Plus Year Treasury Bond ETF (TLT) as investors may be cautious with long-duration positions.
As the Fed continues to tighten, investors may be cautious with outright long-duration positions in Treasuries. This could lead to a negative impact on the iShares 20 Plus Year Treasury Bond ETF (TLT) in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80