Streetbeat News

Interest Rates

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^IXIC

US stocks opened lower on Thursday following the Federal Reserve's economic forecasts and interest rate decision. Despite the stock market's mixed performance, the bond market continues to rally. DWS Group's George Catrambone discussed potential bull and bear market scenarios based on current economic data and consumer pricing pressures.

Portfolio Pulse from

March 20, 2025 | 8:30 pm

FXB

The Bank of England (BoE) kept interest rates unchanged at 4.5%, with eight out of nine Monetary Policy Committee members voting to hold rates steady. Governor Andrew Bailey highlighted significant economic uncertainty, which impacted the Pound Sterling's performance against the US Dollar.

Portfolio Pulse from

March 20, 2025 | 6:45 pm

SPY

Vincent Reinhart, chief economist at BNY Investments, forecasts the Federal Reserve will likely implement a half-point interest rate reduction this year. His prediction comes in the context of analyzing Jerome Powell's recent Federal Open Market Committee (FOMC) speech and assessing the central bank's monetary policy approach.

Portfolio Pulse from

March 20, 2025 | 4:45 pm

GLD

XLU

Barry Bannister from Stifel predicts a short-term stock market rally to 5,500 by June, followed by a potential fall to 4,200 by year-end. He anticipates two Fed rate cuts and warns of a mild recession in late 2025, recommending defensive investments in utilities, gold, and cash.

Portfolio Pulse from

March 20, 2025 | 4:30 pm

SPY

The Federal Reserve has decided to maintain its current Fed Funds Rate at 4.25%-4.50% and will reduce Treasury Security balance sheet runoff from $25 billion to $5 billion monthly starting April 2025. Chair Powell highlighted significant economic uncertainty, which is constraining the Fed's ability to make definitive monetary policy adjustments.

Portfolio Pulse from

March 20, 2025 | 4:30 pm

FXB

The Bank of England held its policy rate at 4.5% in March, with an 8-1 vote, reflecting a cautious monetary stance. High inflation and weak economic growth are creating a complex policy environment, with recent data showing elevated CPI and core inflation while economic indicators suggest declining household consumption and business investment.

Portfolio Pulse from

March 20, 2025 | 4:15 pm

US10Y

The Trump administration is uniquely positioning itself to potentially lower 10-year Treasury rates by intentionally slowing economic growth. This strategy introduces significant market uncertainty, potentially leading to wider credit spreads and increased risk for overvalued U.S. stocks. The approach suggests a structural shift towards a lower rate environment with implications for financial markets.

Portfolio Pulse from

March 20, 2025 | 3:30 pm

SPY

The Federal Reserve has maintained its projection of two rate cuts in 2024, reassuring financial markets despite mixed economic indicators. The Fed's latest projections suggest lower economic growth, slightly higher unemployment, and increased inflation, but long-term inflation expectations remain anchored, which has helped boost investor confidence and stock market performance.

Portfolio Pulse from

March 20, 2025 | 1:30 pm

SPY

Federal Reserve Chairman Jerome Powell used the term 'transitory' to describe inflationary effects of tariffs during recent FOMC commentary, causing market discussion. The remarks followed a post-FOMC rally and suggest the Fed is carefully monitoring economic conditions while maintaining a nuanced stance on inflation.

Portfolio Pulse from

March 20, 2025 | 1:15 pm

UUP

Major developed market central banks are becoming increasingly cautious about interest rate cuts due to complex economic and geopolitical conditions. While some banks like Switzerland and Canada have reduced rates, others are signaling a more measured approach, with concerns about inflation, growth, and potential trade tensions influencing their monetary policy decisions.

Portfolio Pulse from

March 20, 2025 | 1:15 pm