Bloomberg News reports that relief for the US stock market that has been battered might be a couple of meetings of the Federal Reserve away.
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This is exactly the scenario that the strategists are laying out, including Invesco’s Kristina Hooper. According to Kristina, it is quite likely that September is a probable time frame for the central bank in the United States to pivot to a less aggressive stance related to monetary tightening.
Hooper, Invesco’s chief global market strategist said during a Bloomberg Radio interview on Monday that this might be a genuine catalyst for the stocks in the United States. Hooper also said it would be better if Fed adopts a less hawkish demeanor towards the last quarter, partly provided inflation anticipations are anchored well.
A fixation related to slow growth is seeping through the markets, causing the investors to expect less of how escalating cost of borrowing can go to combat inflation as well as cost cuts in Fed interest rate next year.
One view says that what is the need of the hour is if the central bank is a little less belligerent, it can act as a tonic for the stocks following their drop into a bear market in the current year.
Bloomberg News reports that a significant turn from the Federal Reserve could occur at the policy meeting for September 2021, which was revealed by Chris Weston, the head of Pepperstone Group’s research division.
The 10-year yield from US Treasury that was found approaching 3.50% in June has nosedived to 2.88% amidst a jittery growth monetary outlook.
Strategists at JPMorgan Chase & Co., led by Mislav Matejka, reveal that risk rewards related to equities will start looking more appealing towards the latter part of the year as the Federal policy will become more balanced after the rate hikes in July and September.
In a recent interview, Deutsche Bank AG private bank Christian Nolting, the global chief investment officer, revealed that it is likely that the Federal Reserve will hasten now but eventually slow down a little.
