Today, Within Few Hours the FOMC Rate Hikes will be out. While This could be one of the biggest Desicion maker for the whole financial markets of the entrie world not just the USA.
Many Analysts and Experts forecast 75 BPS rate Hikes in September which is priced in as per the experts and markets are going to React Positive if FED raise 75 BPS rate hikes.
If 100 BPS rate hikes is in Cards the market expects to Remain bearish. Bitcoin Could potentially break the current lows at around $18,000 and headed towards 14k atleast if 100 BPS rate hikes are true.
Here’s what Top Players forecasts are –
GOLDMAN SACHS
“WE HAVE RAISED OUR FED FUNDS RATE FORECAST BY 75BP OVER THE LAST TWO WEEKS, AND NOW EXPECT THAT THE FOMC WILL HIKE BY 75BP IN SEPTEMBER, 50BP IN NOVEMBER, AND 50BP IN DECEMBER TO REACH OUR TERMINAL RATE FORECAST OF 4-4.25% BY THE END OF 2022”
MORGAN STANLEY
“WE EXPECT THE FOMC TO RAISE RATES BY 75BP AT ITS SEPTEMBER MEETING AND UPWARDLY REVISE THE PROJECTED PEAK RATE TO 4.1% AT END-2023, AND WE CONTINUE TO SEE RATE CUTS BEGINNING IN 2024”
BANK OF AMERICA
“WE EXPECT THE FED TO RAISE ITS POLICY RATE BY 75BP IN SEPTEMBER TO 3.0-3.25% AND PROJECT THE TARGET RANGE FOR THE FEDERAL FUNDS RATE TO REACH 3.75-4.0% BY YEAR-END”
WELLS FARGO
“A 75BP (OR BETTER) SEPTEMBER HIKE IS BAKED INTO EXPECTATIONS, AND WE BELIEVE THIS WILL BE THE LAST 75BP HIKE FOR SOME TIME… IN ALL, WE BELIEVE WE ARE AT PEAK HAWKISHNESS AND INFLATION”
CITI
“THE FED WILL LIKELY DELIVER ITS THIRD CONSECUTIVE 75BP RATE HIKE ON WEDNESDAY… ULTIMATELY, THE FED WILL NEED TO CONFRONT WHETHER THE 4-4.5% TERMINAL RATE NOW BEING PRICED IN IS RESTRICTIVE, OR JUST NEUTRAL, GIVEN UNDERLYING INFLATION CURRENTLY AT 4%+”
NOMURA
“MATERIALIZING UPSIDE INFLATION RISKS ARE LIKELY TO RESULT IN THE FED RAISING RATES BY 100BP AT THE SEPTEMBER FOMC MEETING… WE CONTINUE TO EXPECT A 50BP HIKE IN NOVEMBER, BUT NOW ANTICIPATE ANOTHER 50BP HIKE IN DECEMBER”
