The Fed Interest Rate Decision, Stock/Bond Portfolios, ECB’s Determination To Reach Price Stability - 20.09.2022
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On Wednesday the Fed is due to make their interest rate decision. A US portfolio that is split 60/40 between stocks and bonds is headed for its worst year since 1937. ECB is determined to deliver price stability through rising interest rates.
In this article:
- The Fed’s Interest rate hike tomorrow.
- US Stock/Bond portfolio down.
- The ECB is determined to fight inflation through rising interest rates.
The Fed due to make their interest rate decision on Wednesday
The SwissQuote tweeted about the expectations the market has ahead of the Fed’s interest rate hike decision on Wednesday.
Fed will likely hike by 75bp ; SNB will likely follow!
— Swissquote (in English) (@Swissquote) September 20, 2022
â–¶ï¸Â Discover today's market highlights on our #MarketTalk with @IpekOzkardeskay: https://t.co/Lzfate1wod pic.twitter.com/ZnOfnyHVvM
On Wednesday the Fed is due to make their interest rate decision, this interest rate decision came in the wake of the US CPI inflation results which were released during last weeks trading week.
US Stock/Bond portfolio is suffering
According to Charlie Bilello a US Stock/Bond portfolio is likely to experience its worse financial performance in 86 years.
A 60/40 Portfolio of US Stocks/Bonds is down 16.2% in 2022, on pace for its worst calendar year since 1937. pic.twitter.com/d6gnbohRLw
— Charlie Bilello (@charliebilello) September 20, 2022
A US portfolio that is split 60/40 between stocks and bonds is headed for its worst year since 1937.
European central bank (ecb) determined to fight inflation
The president of the ECB Christine Lagarde makes it clear that the ECB is determined to fight inflation through rising interest rates.
We are determined to deliver price stability, and expect to raise interest rates further to achieve 2% inflation, says President @Lagarde. We must settle at a rate that ensures inflation returns durably to our target, as the economic environment evolves https://t.co/d5HvwVEiR0 pic.twitter.com/mCXxS1yk1f
— European Central Bank (@ecb) September 20, 2022
The ECB is determined to deliver price stability through rising interest rates. The ECB is willing to settle the rate of inflation at its target.
Sources: twitter.com
