Rate Hike Face to Face Open – Neal Bhai Reports INDIA
Now Eye on World Trade War or ECB Meet Again
Big Volatility Ahed These Days.
Expect :
✅ 2 More Rate Hike in 2018
✅ 3 More Rate Hike in 2019
T-Bond Yield Increces Reguler 3%
Where Jobless Rate Down : Expect 3.6 – 3%
Acche Din for the US? Well, Fed Chairman Jerome Powell has said as much. He made it clear that the US economy is “doing very well” soon after the Fed raised interest rates by a quarter percentage point to a range of 1.75 per cent to 2 per cent for the second time this year. The increase does not come as a surprise to markets, but the slightly more aggressive pace does point to greater urgency to tighten the policy.
What does the data say? Unemployment fell in May to the level the Fed had forecast for year-end. US growth is also getting a boost from the huge tax cuts and rise in federal spending. And inflation is close to the goal. The dot plot –a statistical chart with data points plotted on a fairly simple scale — showed eight Fed policy makers expected four or more quarter-point rate increases for the full year, compared with seven officials during the previous forecast round in March.
Should India and other emerging markets worry, given that these economies could face stress as they cope with a stronger dollar and rising interest and capital outflow? Borrowing overseas will become expensive too. The RBI has partly factored in risks the external sector presents to inflation in India while raising the policy rate earlier this month.