US Federal Reserve Review and Outlook

Monday 06 February 2023

Investment Talks

   

US Federal Reserve Review and Outlook

February 2023 | At its February meeting, the US Federal Reserve slowed the pace of rate hikes for the second consecutive meeting from 50bp to 25bp, moving the Fed funds target rate to 4.50-4.75%. We think the tight labor report and signs of sticky wages means the US Federal Reserve will likely continue its tightening cycle beyond the March meeting.

01 |  The Federal Open Market Committee (FOMC) said it will consider cumulative tightening and economic data on growth and inflation when making future decisions.

02 | We believe volatility will remain high as markets assess labour markets and inflation and their effects on the Fed's future  rate hiking path.

03 | The latest employment data were much stronger than expected by the markets, indicating that the US is not close to a recession.

US Federal Reserve Review and Outlook

Important Information

Unless otherwise stated, all information contained in this document is from Amundi Asset Management US (Amundi US) and is as of February 06, 2023. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi US and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results. Amundi Asset Management US is the US business of the Amundi Asset Management group of companies.

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