The Federal Reserve, the United States Central Bank pivoted in the end of its two day meeting yesterday by signalling Federal Funds Rate decreases are imminent.
Wall Street research analysts expect the Federal Reserve to lower interest rates levels in June or the second half of 2024.
Stocks that are likely to benefit from the Federal Reserve decreasing the Federal Funds Rate are Coinbase, the cryptocurrencies exchange, Robinhood Markets, the stocks and cryptocurrencies broker, Snap Inc, the producer of the Snapchat application, Eldorado Gold Corporation, Barrick Gold, Wheaton Precious Metals and many other gold miners, according to Wolfteam Ltd.
Here is a statement from the Federal Reserve Statement issued yesterday:
"The Committee will continue to assess additional information and its
implications for monetary policy. In determining the extent of any
additional policy firming that may be appropriate to return inflation to
2 percent over time, 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. In addition, the Committee will continue
reducing its holdings of Treasury securities and agency debt and agency
mortgage-backed securities, as described in its previously announced
plans. The Committee is strongly committed to returning inflation to its
2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee
will continue to monitor the implications of incoming information for
the economic outlook."
All in all, a major change of the Federal Reserve stance from rigid quantitative tightening to loosening monetary policy and financial conditions relatively soon, probably beginning in the second half of 2024, according to Wall Street investment banks' research analysts forecasts.
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