The federal reserve rate hike on Wednesday led to a deep selloff in US regional banks on Thursday. Now, the fear is that another financial shoe may soon drop.

Bank rout rages on in US after Fed rate hikes

US fed rate hike latest update:&nbsp;The stage is set for the first Federal Open Market Committee (FOMC) meeting slated to be held on January 31-February 1, 2023. The meeting is of great interest to stock market players across the world. The announcement of the interest rate hikes by the Fed will be made on February 1 at 2:00 PM ET or 12:30 AM on February 2 as per IST. For a second consecutive meeting, the US Federal Reserve is expected to raise interest by a quarter percentage point. The US Fed earlier resorted to a modest interest rate hike of 50 basis point increase in December after 4 consecutive interest rate hikes of 75 basis points. &nbsp;FOMC meets at least 8 times a year, with additional meetings also lined up as required.&nbsp;

<h2>European and American markets close lower</h2>

Investors around the world, including in Asia and Europe, are looking for hints about how much interest rate hike will be announced by the Fed in the face of rising inflation. The Stoxx 600 index for all of Europe dropped 0.2 per cent at the closing, with the majority of sectors trading down. Food and beverage stocks finished 0.7 per cent higher, while the IT sector saw the worst decline, falling 1.7 per cent. The same trend was visible across American and Asian stocks.

<h2>When are interest rate cuts expected?</h2>

The Fed won’t cut interest rates until and unless inflation in the US gets under control. A substantial development towards achieving the 2 per cent inflation target should be visible to get US Fed to cut interest rates. Analysts believe that we won’t be able to see interest rate cuts before Q4 2023 or early Q1 2024. Financial Express quoted Kavan Choksi, a successful investor, business management, and wealth consultant at KC Consulting, as saying that the US might enter a recession in 2023 as the Fed won’t cut interest rates that might trigger counter-productive results for the skyrocketing inflation in the country.

US fed rate hike latest update: The stage is set for the first Federal Open Market Committee (FOMC) meeting slated to be held on January 31-February 1, 2023. The meeting is of great interest to stock market players across the world.

US fed rate hike latest update: The stage is set for the first Federal Open Market Committee (FOMC) meeting slated to be held on January 31-February 1, 2023. The meeting is of great interest to stock market players across the world. The announcement of the interest rate hikes by the Fed will be made on February 1 at 2:00 PM ET or 12:30 AM on February 2 as per IST. For a second consecutive meeting, the US Federal Reserve is expected to raise interest by a quarter percentage point. The US Fed earlier resorted to a modest interest rate hike of 50 basis point increase in December after 4 consecutive interest rate hikes of 75 basis points. FOMC meets at least 8 times a year, with additional meetings also lined up as required. European and American markets close lower Investors around the world, including in Asia and Europe, are looking for hints about how much interest rate hike will be announced by the Fed in the face of rising inflation. The Stoxx 600 index for all of Europe dropped 0.2 per cent at the closing, with the majority of sectors trading down. Food and beverage stocks finished 0.7 per cent higher, while the IT sector saw the worst decline, falling 1.7 per cent. The same trend was visible across American and Asian stocks. When are interest rate cuts expected? The Fed won’t cut interest rates until and unless inflation in the US gets under control. A substantial development towards achieving the 2 per cent inflation target should be visible to get US Fed to cut interest rates. Analysts believe that we won’t be able to see interest rate cuts before Q4 2023 or early Q1 2024. Financial Express quoted Kavan Choksi, a successful investor, business management, and wealth consultant at KC Consulting, as saying that the US might enter a recession in 2023 as the Fed won’t cut interest rates that might trigger counter-productive results for the skyrocketing inflation in the country.

US FOMC (Fed) Meeting 2023 Today: Check time & expected hike; know when interest rate cuts are expected

The Nasdaq index tumbled nearly 3% on Thursday after a fresh batch of data showing a resilient economy fueled worries that the Federal Reserve would stick to its aggressive tightening path; with Micron's&nbsp;glum forecast&nbsp;adding to a downbeat mood.

Apple Inc, Microsoft Corp&nbsp;and Amazon.com Inc&nbsp;fell more than 3% each, as two-year Treasury yields regained steam on prolonged rate hike expectations.

Tesla Inc&nbsp;plunged 6.5% after the electric-vehicle maker doubled its&nbsp;discount offering&nbsp;on models in the U.S. this month, amid concerns over softening demand.

Losses in rate-sensitive growth stocks saw technology&nbsp;and consumer discretionary sectors lead losses among the 11 major S&amp;P 500&nbsp;sub-indexes.

The&nbsp;final estimate&nbsp;of the third-quarter U.S. gross domestic product revealed the economy grew at a 3.2% annualized rate, above the previous estimate of 2.9%.

Meanwhile, a Labor Department report showed the number of Americans filing for state unemployment benefits increased to 216,000 last week, much below economists' estimate of 222,000, indicating a still-tight labour market.

"The GDP data beat a lot of expectations. There are concerns that the economy is not giving up too easily and it's putting up a fight that will likely require the Fed to remain hawkish and keep interest rates higher for longer," Sam Stovall, chief investment strategist at CFRA Research in New York, said.

The Philadelphia SE Semiconductor index&nbsp;was also set for its worst single-day performance in two months as shares of Micron Technology Inc, Nvidia Corp, Qualcomm Inc&nbsp;and Advanced Micro Devices Inc&nbsp;fell between 4.4% and 7.4%.

Fears of a recession following the U.S. central bank's prolonged interest rate hikes have weighed heavily on equities this year, with the benchmark S&amp;P 500&nbsp;set for annual declines of 20%, its worst such performance since the 2008 financial crisis.

Bets for a 25-basis point hike to 4.5%-4.75% in February by the Fed remained largely unchanged at 71.4% following the data on Thursday, although expectations for the terminal rate inched up to 4.89% by May 2023.

At 11:44 a.m. ET, the Dow Jones Industrial Average&nbsp;was down 500.33 points, or 1.50%, at 32,876.15, the S&amp;P 500&nbsp;was down 76.56 points, or 1.97%, at 3,801.88, and the Nasdaq Composite&nbsp;was down 303.39 points, or 2.83%, at 10,405.98.

CarMax Inc&nbsp;slid 7.5% to the bottom of the S&amp;P 500 after the used-vehicles retailer&nbsp;paused share buybacks&nbsp;following an 86% plunge in quarterly profit.

AMC Entertainment Holdings Inc&nbsp;slumped 13.6% after the world's largest cinema chain said it would&nbsp;raise $110 million&nbsp;through a preferred stock sale.

Declining issues outnumbered advancers for a 5.42-to-1 ratio on the NYSE and a 2.86-to-1 ratio on the Nasdaq.

The S&amp;P index recorded one new 52-week high and 15 new lows, while the Nasdaq recorded 57 new highs and 303 new lows.

The Nasdaq index tumbled nearly 3% on Thursday after a fresh batch of data showing a resilient economy fueled worries that the Federal Reserve would stick to its aggressive tightening path; with Micron's glum forecast adding to a downbeat mood.

The Nasdaq index tumbled nearly 3% on Thursday after a fresh batch of data showing a resilient economy fueled worries that the Federal Reserve would stick to its aggressive tightening path; with Micron's glum forecast adding to a downbeat mood. Apple Inc, Microsoft Corp and Amazon.com Inc fell more than 3% each, as two-year Treasury yields regained steam on prolonged rate hike expectations. Tesla Inc plunged 6.5% after the electric-vehicle maker doubled its discount offering on models in the U.S. this month, amid concerns over softening demand. Losses in rate-sensitive growth stocks saw technology and consumer discretionary sectors lead losses among the 11 major S&P 500 sub-indexes. The final estimate of the third-quarter U.S. gross domestic product revealed the economy grew at a 3.2% annualized rate, above the previous estimate of 2.9%. Meanwhile, a Labor Department report showed the number of Americans filing for state unemployment benefits increased to 216,000 last week, much below economists' estimate of 222,000, indicating a still-tight labour market. "The GDP data beat a lot of expectations. There are concerns that the economy is not giving up too easily and it's putting up a fight that will likely require the Fed to remain hawkish and keep interest rates higher for longer," Sam Stovall, chief investment strategist at CFRA Research in New York, said. The Philadelphia SE Semiconductor index was also set for its worst single-day performance in two months as shares of Micron Technology Inc, Nvidia Corp, Qualcomm Inc and Advanced Micro Devices Inc fell between 4.4% and 7.4%. Fears of a recession following the U.S. central bank's prolonged interest rate hikes have weighed heavily on equities this year, with the benchmark S&P 500 set for annual declines of 20%, its worst such performance since the 2008 financial crisis. Bets for a 25-basis point hike to 4.5%-4.75% in February by the Fed remained largely unchanged at 71.4% following the data on Thursday, although expectations for the terminal rate inched up to 4.89% by May 2023. At 11:44 a.m. ET, the Dow Jones Industrial Average was down 500.33 points, or 1.50%, at 32,876.15, the S&P 500 was down 76.56 points, or 1.97%, at 3,801.88, and the Nasdaq Composite was down 303.39 points, or 2.83%, at 10,405.98. CarMax Inc slid 7.5% to the bottom of the S&P 500 after the used-vehicles retailer paused share buybacks following an 86% plunge in quarterly profit. AMC Entertainment Holdings Inc slumped 13.6% after the world's largest cinema chain said it would raise $110 million through a preferred stock sale. Declining issues outnumbered advancers for a 5.42-to-1 ratio on the NYSE and a 2.86-to-1 ratio on the Nasdaq. The S&P index recorded one new 52-week high and 15 new lows, while the Nasdaq recorded 57 new highs and 303 new lows.

Wall Street tumbles on rate, recession worries, bleak chipmaker outlook

The US Federal Reserve is expected to raise the interest rates significantly for the third consecutive time as it finds it difficult to tame inflation.&nbsp;

Experts believe that the central bank will raise its benchmark interest rate by 0.75 basis points in the range of 3 to 3.25 per cent, following&nbsp;similarly large&nbsp;rate hikes in June and July.&nbsp;

The policy decision, which will be announced at 2 p.m. EDT (1800 GMT), falls in line with the policy shift of the global central banks who are testing the resilience of the world's economy and the ability of countries to manage exchange rate shocks as the value of the dollar soars, reports Reuters.&nbsp;

Speaking at an economic conference in Wyoming last month, Federal Reserve Chair Jerome Powell issued a warning, saying that the central bank’s aim to curb inflation by aggressively raising interest rates would "bring some pain” for Americans.&nbsp;

"If we don't get inflation down, we're in trouble. So that's the number one job," he said.&nbsp;

It comes at a time when the US is struggling to control its inflation, which hovered around 8.3 per cent in August— down only slightly from the month before. &nbsp;

Though the gas price has dropped sharply&nbsp;from its record high in June, and airline tickets have gotten a bit cheaper, other costs continue to soar, including essentials such as rent, groceries and electricity.&nbsp;

The Fed has already increased its benchmark rate four times this year — from near zero to about 2.375 per cent, making it expensive to buy a car, use a credit card or get a mortgage. &nbsp;

(With inputs from agencies)&nbsp;

WATCH WION LIVE HERE:&nbsp;

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The US Federal Reserve is expected to raise the interest rates significantly for the third consecutive time as it finds it difficult to tame inflation. Experts believe that the central bank will raise its benchmark interest rate by 0.

The US Federal Reserve is expected to raise the interest rates significantly for the third consecutive time as it finds it difficult to tame inflation. Experts believe that the central bank will raise its benchmark interest rate by 0.75 basis points in the range of 3 to 3.25 per cent, following similarly large rate hikes in June and July. The policy decision, which will be announced at 2 p.m. EDT (1800 GMT), falls in line with the policy shift of the global central banks who are testing the resilience of the world's economy and the ability of countries to manage exchange rate shocks as the value of the dollar soars, reports Reuters. Speaking at an economic conference in Wyoming last month, Federal Reserve Chair Jerome Powell issued a warning, saying that the central bank’s aim to curb inflation by aggressively raising interest rates would "bring some pain” for Americans. "If we don't get inflation down, we're in trouble. So that's the number one job," he said. It comes at a time when the US is struggling to control its inflation, which hovered around 8.3 per cent in August— down only slightly from the month before. Though the gas price has dropped sharply from its record high in June, and airline tickets have gotten a bit cheaper, other costs continue to soar, including essentials such as rent, groceries and electricity. The Fed has already increased its benchmark rate four times this year — from near zero to about 2.375 per cent, making it expensive to buy a car, use a credit card or get a mortgage. (With inputs from agencies) WATCH WION LIVE HERE:

US Fed set to raise interest rate ‘significantly’ as inflation continues to soar  

Sluggish economic growth in the second quarter forced the Federal Reserve to keep its benchmark interest rate unchanged for the sixth straight meeting on Wednesday.&nbsp; 
 
The central bank kept its target rate for overnight lending between banks in a range of 0.25 percent to 0.50 percent.&nbsp; 
 
Fed Chair Janet Yellen said US growth was looking stronger and rate increases would be needed to keep the economy from overheating and fuelling high inflation. 
 
&quot;We judged that the case for an increase has strengthened but decided for the time being to wait,&quot; Yellen told a news conference. &quot;The economy has a little more room to run.&quot; 
 
Yellen said the Federal Open Market Committee has to thread the needle between stifling growth with a premature increase and allowing the economy, feeding on a decade of easy money, to get away from them. 
 
But the two-meeting showed deep divisions between the policymakers, with three of the 10 arguing for a rate rise now.&nbsp; 
 
While some displayed confidence the economy would continue to grow through the second half, others said they need to see more sign of strength in the economy.&nbsp; 
 
The central bank cut its 2016 growth forecast to 1.8 percent, down from 2.0 percent in June, saying there were some persistent weak signs in the economy.&nbsp; 
 
It also projected a less aggressive rise in interest rates next year and in 2018, and cut its longer-run interest rate forecast to 2.9 percent from 3.0 percent. 
 
The Fed strongly signalled it could still tighten monetary policy by the end of this year as the labour market improved further and the inflation picked up.&nbsp; 
 
Yellen said she expected one rate increase this year if the job market continued to improve and major new risks did not arise. 
 
Analysts said the Fed certainly leaned toward a December hike but nevertheless left open the possibility of not taking any rate action before 2017. 
 
The next policy meetings of the US Federal Reserve are scheduled in early November and mid-December. 
 
(WION with inputs from agencies) 
&nbsp;

US Fed Chair Janet Yellen said the US growth appeared roughly balanced and needed more strength to survive a rate hike

Sluggish economic growth in the second quarter forced the Federal Reserve to keep its benchmark interest rate unchanged for the sixth straight meeting on Wednesday. The central bank kept its target rate for overnight lending between banks in a range of 0.25 percent to 0.50 percent. Fed Chair Janet Yellen said US growth was looking stronger and rate increases would be needed to keep the economy from overheating and fuelling high inflation. "We judged that the case for an increase has strengthened but decided for the time being to wait," Yellen told a news conference. "The economy has a little more room to run." Yellen said the Federal Open Market Committee has to thread the needle between stifling growth with a premature increase and allowing the economy, feeding on a decade of easy money, to get away from them. But the two-meeting showed deep divisions between the policymakers, with three of the 10 arguing for a rate rise now. While some displayed confidence the economy would continue to grow through the second half, others said they need to see more sign of strength in the economy. The central bank cut its 2016 growth forecast to 1.8 percent, down from 2.0 percent in June, saying there were some persistent weak signs in the economy. It also projected a less aggressive rise in interest rates next year and in 2018, and cut its longer-run interest rate forecast to 2.9 percent from 3.0 percent. The Fed strongly signalled it could still tighten monetary policy by the end of this year as the labour market improved further and the inflation picked up. Yellen said she expected one rate increase this year if the job market continued to improve and major new risks did not arise. Analysts said the Fed certainly leaned toward a December hike but nevertheless left open the possibility of not taking any rate action before 2017. The next policy meetings of the US Federal Reserve are scheduled in early November and mid-December. (WION with inputs from agencies)

Federal Reserve keeps interest rates unchanged, Chair Yellen signals one hike by year end

Global investors are awaiting the outcomes of the US Federal Reserve policy meeting that began on Tuesday.&nbsp; 
 
Policy-settling Federal Open Market Committee is in the same position it was in each of its five previous meetings this year, owing to weak inflation and consumer spending data.&nbsp; 
 
Federal Reserve chair Janet Yellen made encouraging remarks in August that conditions were ripe for an increase, leading the markets to believe that the benchmark federal funds rate would be lifted this week, from its current 0.25-0.50 percent level. 
 
But weak economic data since then has led widespread expectation that the Federal Reserve will keep interest rates locked at an ultra-low level. 
 
&quot;It seems like every time the Fed places a rate hike &#39;on the table,&#39; the economic data quickly weaken, making the chances of an actual rise ever rockier. So it appears set to go with September,&quot; said Pedro da Costa of the Peterson Institute for International Economics. 
 
The Fed has struggled to get away from its extraordinarily loose monetary policy dating back to the 2008 crisis. But the US and global economic uncertainty continue to bind its hands.&nbsp; 
 
&quot;We do not expect a change in Fed policy, and we continue to forecast no policy rate changes for the balance of the year,&quot; said Jason Schenker of Prestige Economics in a client note. 
 
Few expect a rate hike at the end of the two-day meeting on Wednesday. Most analysts were setting their sights on an increase possibly at the December meeting.&nbsp; 
 
(WION with inputs from agencies) 
&nbsp;

Analysts say the tepid economic growth has left no room for changes in the Fed policy and the rates will likely remain at ultra-low level

Global investors are awaiting the outcomes of the US Federal Reserve policy meeting that began on Tuesday. Policy-settling Federal Open Market Committee is in the same position it was in each of its five previous meetings this year, owing to weak inflation and consumer spending data. Federal Reserve chair Janet Yellen made encouraging remarks in August that conditions were ripe for an increase, leading the markets to believe that the benchmark federal funds rate would be lifted this week, from its current 0.25-0.50 percent level. But weak economic data since then has led widespread expectation that the Federal Reserve will keep interest rates locked at an ultra-low level. "It seems like every time the Fed places a rate hike 'on the table,' the economic data quickly weaken, making the chances of an actual rise ever rockier. So it appears set to go with September," said Pedro da Costa of the Peterson Institute for International Economics. The Fed has struggled to get away from its extraordinarily loose monetary policy dating back to the 2008 crisis. But the US and global economic uncertainty continue to bind its hands. "We do not expect a change in Fed policy, and we continue to forecast no policy rate changes for the balance of the year," said Jason Schenker of Prestige Economics in a client note. Few expect a rate hike at the end of the two-day meeting on Wednesday. Most analysts were setting their sights on an increase possibly at the December meeting. (WION with inputs from agencies)

US Federal Reserve meeting opens, markets forecast no policy rate hike

Gold fell on Friday for the first time this week as hawkish comments from US Federal Reserve officials renewed bets on a US rate hike this year, but was still on track to end the week with modest gains. 
 
Spot gold was down 0.3 per cent at $1,348.31 per ounce at 0655 GMT, but up 0.1 per cent for the week. 
 
US gold dropped 0.3 per cent to $1,351.10 an ounce. 
 
San Francisco Fed President John Williams on Thursday joined a growing chorus of his colleagues signalling support for a US interest rate hike in coming months. New York Fed President William Dudley reinforced his confidence on a possible interest-rate hike for a second time in the week. 
 
Dallas Fed president Robert Kaplan, however, saw limited room to manoeuvre on rate hikes. 
 
Reports showed the number of Americans filing for unemployment benefits fell more than expected last week, while manufacturing activity in the US Mid-Atlantic region saw a mild improvement this month. 
 
&quot;There is no clear direction from the Fed. Adding to that there are mixed views from the Fed officials,&quot; said Brian Lan, managing director at Singapore-based gold dealer GoldSilver Central. 
 
Members of the Fed&#39;s rate-setting Federal Open Market Committee were generally upbeat about the US economy and labour market, but several said any slowdown in future hiring would augur against a near-term hike. 
 
Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced. 
 
Signals are neutral for spot gold as it is stuck in a range of $1,337.22-$1,358.01 per ounce, Reuters technical analyst Wang Tao said.&nbsp; 
 
&quot;The money going into the ETFs (exchange-traded funds) looks to be slowing down a bit and it feels that the market has been feeling a bit heavy on the longs,&quot; said a Sydney-based precious metals trader. 
 
&quot;Maybe we need a little bit of washout. Won&#39;t be surprised if we touch new lows of $1,320.&quot; 
 
Holdings of SPDR Gold Trust, the world&#39;s largest gold-backed ETF, fell for a second day.&nbsp; 
 
The index of the dollar against a basket of six major currencies was up about 0.2 per cent at 94.359. 
 
A stronger dollar discourages gold buying by making the metal more expensive for holders of other currencies. 
 
European Central Bank rate setters agreed not to discuss any policy change at their July meeting and to keep market hopes for more stimulus in check, minutes showed on Thursday. 
 
Silver was down 0.6 per cent at $19.61 an ounce. 
 
Platinum slipped 0.2 per cent at $1,123. 
 
Palladium was down 0.7 per cent at $707.55, after hitting a one-week high of $717.70 Thursday. 
 
(Rueters)

Fed Reserve officials have demanded for interest rates to be upped in coming months

Gold fell on Friday for the first time this week as hawkish comments from US Federal Reserve officials renewed bets on a US rate hike this year, but was still on track to end the week with modest gains. Spot gold was down 0.3 per cent at $1,348.31 per ounce at 0655 GMT, but up 0.1 per cent for the week. US gold dropped 0.3 per cent to $1,351.10 an ounce. San Francisco Fed President John Williams on Thursday joined a growing chorus of his colleagues signalling support for a US interest rate hike in coming months. New York Fed President William Dudley reinforced his confidence on a possible interest-rate hike for a second time in the week. Dallas Fed president Robert Kaplan, however, saw limited room to manoeuvre on rate hikes. Reports showed the number of Americans filing for unemployment benefits fell more than expected last week, while manufacturing activity in the US Mid-Atlantic region saw a mild improvement this month. "There is no clear direction from the Fed. Adding to that there are mixed views from the Fed officials," said Brian Lan, managing director at Singapore-based gold dealer GoldSilver Central. Members of the Fed's rate-setting Federal Open Market Committee were generally upbeat about the US economy and labour market, but several said any slowdown in future hiring would augur against a near-term hike. Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced. Signals are neutral for spot gold as it is stuck in a range of $1,337.22-$1,358.01 per ounce, Reuters technical analyst Wang Tao said. "The money going into the ETFs (exchange-traded funds) looks to be slowing down a bit and it feels that the market has been feeling a bit heavy on the longs," said a Sydney-based precious metals trader. "Maybe we need a little bit of washout. Won't be surprised if we touch new lows of $1,320." Holdings of SPDR Gold Trust, the world's largest gold-backed ETF, fell for a second day. The index of the dollar against a basket of six major currencies was up about 0.2 per cent at 94.359. A stronger dollar discourages gold buying by making the metal more expensive for holders of other currencies. European Central Bank rate setters agreed not to discuss any policy change at their July meeting and to keep market hopes for more stimulus in check, minutes showed on Thursday. Silver was down 0.6 per cent at $19.61 an ounce. Platinum slipped 0.2 per cent at $1,123. Palladium was down 0.7 per cent at $707.55, after hitting a one-week high of $717.70 Thursday. (Rueters)

US gold slides amid talks of Fed rate hike

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