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Writer's pictureSalyl Bhagwat

On the SPOT™ blog (05/02/2024) [A..]

This morning (PST), all three major US indices are in the green. Feds held the rates steady citing lack of further progress in bringing inflation down. FOMC conclusion showed that committee does not think it to be appropriate to cut rates until there is greater confidence that inflation is moving sustainably towards target 2%. Feds announced reduction of balance sheet roll-off starting in June. This is perhaps viewed as slightly easing the quantitative tightening. Chairman mentioned that inflaiton is still too high and that further progress in bringing it down is not assured and path forward remains uncertain. Still, his comments suggested that at least they were not thinking of raising rates right now. In other economic news, employment cost rose more than estimated in Q1 and last week's unemployment claims mostly remain unchanged and the number of claims seemed below estimates.

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