Analysis: "The Fed is likely to freeze interest rates in January."

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CoinDesk predicted that the U.S. Federal Reserve is considering preemptive measures such as purchasing short-term Treasury securities and expanding repo facilities to prevent liquidity depletion in the December Federal Open Market Committee (FOMC) meeting minutes, and that there is a high possibility of freezing interest rates in January. The media outlet explained, "The minutes noted that the current liquidity pressure is escalating more rapidly than during the quantitative easing period from 2017 to 2019, and mentioned that the Fed is considering purchasing $220 billion in short-term Treasury securities. The market is focusing on the first FOMC meeting of the new year, which will be held on the 27th and 28th (local time), and FedWatch projects an 85.1% probability of freezing U.S. interest rates in January. The prevailing analysis is that the Fed will prioritize liquidity management over rate cuts."

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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