Federal Reserve Chairman Jerome Powell speaks at a post-meeting press conference of the Federal Open Market Committee in Washington, DC on February 1, 2023.
Kevin Deitch | Getty Images News | Getty Images
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The Federal Reserve is showing no signs of moving away from rate hikes.
- Federal Open Market Commission February meeting minutes reveal what members believe “Continued” Rate Rise is required. The majority approved his 1-point rate hike by a quarter, but a “minority” wanted his 50-basis-point rate hike.
- US stocks Closes lower on Wednesday, while the Nasdaq Composite rose 0.13%.Asia Pacific market mixed on thursdaySouth Korea’s Kospi rose 1% as South Korea’s central bank kept interest rates on hold.
- Tesla CEO Elon Musk met California Governor Gavin Newsom at the company’s new engineering headquarters in California. Despite Musk’s criticism of the state’s policies, California is the nation’s largest market for electric vehicles.
- NVIDIA Exceed profit and revenue expectationsThe company expects sales to beat Wall Street’s expectations this quarter, thanks to the artificial intelligence boom. The company’s stock price jumped he 8.5% after hours.
- Professional Coinbase’s fourth quarter results beat Wall Street’s expectations, with its stock up 72% this year alone.But shortseller Jim Chanos says he’s still bet on crypto exchanges.
The Federal Reserve Board minutes didn’t tell us anything we didn’t know. In summary, inflation has slowed, but inflation remains worryingly above 2%. Therefore, interest rates should continue to rise. A quarter-point rate hike in February was unanimously supported, but some members wanted a more aggressive pace of rate hikes.
Investors have heard these warnings before, but the market has fallen. The Dow Jones Industrial Average is down his 0.26% and the S&P 500 is down his 0.16% while the Nasdaq is up his 0.13% and Palo Alto Networks is up his 12.5%. Still, the sharp drop in the market suggests that investors who were expecting a dovish tone in the minutes were disappointed.
Moreover, there are signs that the Fed is becoming increasingly aggressive in its fight against inflation. In the words of Krishna Guha, head of global policy and central bank strategy at Evercore ISI, “an effort was made in the minutes to warn of a possible return to a 50bp pace of rate hikes. It is true that there was no But remember, this meeting took place before the Fed got any information on his January labor situation, better-than-expected CPI, and recovery in retail sales.
In that case, it may be wise to listen to the latest comments from Fed officials such as Loretta Mester and James Bullard. I’m even thinking. Despite the Fed’s hawks, the signs point to a no-landing scenario that should give investors some reassurance.
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https://www.cnbc.com/2023/02/23/stock-markets-the-fed-shows-no-sign-of-pausing-interest-rate-hikes.html Federal Reserve shows no signs of pausing rate hikes