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Market Update – May 3 – Eyes on Fed

Market Update – May 3 – Eyes on Fed

Japan and China’s stock exchanges were closed during the holidays Wall Street’s drop and new jitters among US regional banks continued to rattle markets in the US and abroad. On Wednesday, Asian stocks dropped while US futures remained stable as markets awaited an announcement from the Fed. The policy-sensitive short term bonds underperform this morning. Treasuries have a high bid as a safe-haven. Worries about the regional bank sector. Recent data suggests that the sentiment is mixed. An economic slowdown Included is Lowest number of Job Openings It has been almost two years since the last update.
FOMC Preview FOMC The two-day meeting began on Tuesday and the policy decision will be announced at 18:00 GMT on Wednesday. We can expect a 25 bp rise. With no new SEP forecasts to guide the outlook, the focus will be on the policy statement and Chair Powell’s press conference. We don’t expect any explicit forward-looking guidance from the Fed, since they will want to keep all options open. We do expect him to continue to fight against expectations of rate cuts. Along with the decline in Treasury yields ,…, implied Fed funds have fallen.

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