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The most unpredictable Fed meeting

by marusia

US stock indices are growing in the first half of trading on Tuesday. The focus remains on the risks of the banking system and the upcoming Fed meeting.

Trading opened with a small gap up the S&P 500 index. The resistance was the 200-period moving average. The index is in a horizontal channel between 3800 and 4080 points.

Goldman Sachs was the first to comment on this. In his opinion, the banking crisis is an obstacle to the rate increase. Due to rising rates, bonds depreciate, and with rising rates, this process will continue.

Silicon Valley Bank, faced with a sharp need for liquidity, recorded a large loss in the sale of US bonds from its balance sheet, and then the regulator was forced to close it.

Goldman Sachs believes that a pause in raising the Fed’s rate is necessary. A similar opinion is shared by Barclays, and a senior economist at Apollo Global Management suggested that the Fed may completely abandon plans to raise rates.

The head of Bianco Research said that the upcoming FOMC meeting is the most unpredictable since the publication of forecasts from the Fed regarding the future of monetary policy since 2003.

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