Fed Boosts Benchmark By 50 Basis Points

Fed Boosts Benchmark By 50 Basis Points

The Federal Open Market Committee agreed to raise the federal funds target rate by 50 basis points and to begin shrinking the Federal Reserve’s balance sheet in June by $47.5 billion, with the runoff pace to reach a maximum of $95 billion per month after three months. The FOMC noted in its statement that “ongoing” increases to the fed funds target rate will be appropriate. The central bank’s quest now is to find some “neutral” rate of interest without tipping the economy into recession. “The last time the Fed made a 50-basis-point move was March 2000,” notes Darius Dale. “The dot-com bubble burst shortly thereafter, with the S&P 500 losing 50% and the Nasdaq Composite shedding 80% from 2000 peak to 2002 trough.” Equity indexes were mixed shortly after the FOMC announcement and shortly ahead of Fed Chair Jerome Powell’s press conference. Dale, founder and CEO of 42 Macro, joins Real Vision’s Maggie Lake for today’s Real Vision Daily Briefing to talk about the Fed, the economy, and how the “smart money” is reacting to quarterly earnings reports. Want to submit questions? Drop them right here on the Exchange: https://rvtv.io/3y9meHD Learn more about your ad choices. Visit podcastchoices.com/adchoices

Avsnitt(2083)

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The Knock-on Effect #1 - Protectionism and Red Velvet Cake

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After a treacherous few months for equities, investor sentiment appears to have turned relatively ursine. But is the reality that stocks will continue to rise in the short-term at least? Neil Azous of...

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Adventures in Finance 62 - Powering Down: Beginning of the End for Tesla?

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Can Tesla still take over the world – or is the end nigh for the ambitious electric car company? Charley Grant of the Wall Street Journal and Mark Spiegel of Stanphyl Capital join to discuss. Plus, in...

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Adventures in Finance 61 - Crude Awakening:  The Yuan, the Dollar, and the Battle for Global Supremacy

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China appears to be taking a major step to combat the dominance of the U.S. dollar. How significant could that move be, and what political, economic, and market changes might result? Luke Gromen, foun...

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Adventures in Finance 60 - Look Out Below? David Rosenberg’s Stormy Outlook

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After a tumultuous first quarter for stocks, what will the rest of the year bring? Nothing good, according to famed economist David Rosenberg of Gluskin Sheff. He outlines what could be ahead for the ...

30 Mars 201850min

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