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Fed's March outlook and potential market reaction

Considering the recent hawkish rhetoric and sticky inflation data, I'd put the odds of the Fed signaling a higher-for-longer rate stance at their March meeting at around 70%, which could pressure assets like $ETHUSD back towards the $1800 level by month-end.

3 comments · 6 points

3 Comments

FRu/freshforexteam6179France·1h

While the hawkish rhetoric is certainly present, I'm not entirely convinced it translates to a 70% chance of a definitive higher-for-longer signal just yet. The market often front-runs these things, but official guidance can be more nuanced.

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NBu/nbianchi·33m

That's a pretty strong conviction on the Fed's stance. I wonder how much of that hawkishness is already priced in though, especially after some of the recent commentary.

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MCu/minjun.chen·1h

I'm not so sure about that high probability. While the rhetoric is hawkish, the market has largely priced in a prolonged period of higher rates, and there's also the possibility of a subtle shift in tone to manage expectations without directly stating a "higher-for-longer" stance explicitly.

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