PREVIOUS TRADING DAY EVENTS 11 April 2023

Announcements 

The Federal Open Market Committee FOMC statement was released at 2100. The Fed is on track to proceed with further interest rate hikes, despite the warnings for a recession.

Policymakers commented that recent developments in the banking sector were likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring and inflation, the minutes said.

Economists estimate that the Fed will proceed with a rate increase followed by an extended pause. However, credit tightening on the economy might be a problem.

Source httpswww.bloomberg.comnewsarticles20230412fedstressesvigilanceoncreditasrateviewsscaledback?srndeconomicsv2

The CPI change data was released yesterday at 1530, showing lower inflation levels in March. The core CPI, which excludes food and energy, rose by 0.4 from the prior month, in line with economists estimates. The USD depreciated highly at the time of the release.

Yearly inflation still remains high. Its the first time in over two years that the core came in above the overall measure, which was up by 5. The Fed is closely monitoring the economy for signs that the recent banking turmoil still has an effect. The labour market looks strong still. Taking everything into consideration, the Fed will probably raise interest rates at least once more.

A strong disinflationary push is expected from shelter over the summer. Even so, given ongoing…