ASX to dip; Wall Street lower; oil rises

Money markets are reflecting increased speculation that the Federal Reserve might opt for its first super-sized boost to borrowing costs in more than two decades.

While a quarter-point increase is still the most likely scenario, swap markets are now pricing in more than 25 basis points of tightening by the end of March. With no move anticipated at this month’s meeting, that suggests traders are at least contemplating the possibility of a 50-basis-point move in March. The Fed hasn’t tightened that much in one shot since May 2000, when the central bank’s tightening cycle was already well underway.

An increased drumbeat around the prospect of a bigger hike in recent days may have added fuel to the sell-off in Treasury markets on Tuesday that caused benchmark yields to surge.JPMorgan Chase chief executive officer Jamie Dimon last week warned that Fed tightening might not be as “sweet and gentle” as some expect, while billionaire investor Bill Ackman said the Fed should raise its key interest rate by 50 basis points in March to “restore its credibility”.

Australia Latest News, Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

US airlines warn 5G could ground some planes, wreak havocThe airlines warned the new C-Band 5G service set to begin on Wednesday could render a significant number of wide body aircraft unusable. This is not an issue in Australia as acmadotgov has worked with industry to agree guard bands.
Source: FinancialReview - 🏆 2. / 90 Read more »

Winter storm brings snow, strong winds and thunderstorms to US north-eastMore than 50 million under winter weather alerts on Monday morning as Florida also sees tornados and rare snow flurries
Source: GuardianAus - 🏆 1. / 98 Read more »

Why we don’t have a US-style inflation problemGrim warnings of a US-style inflationary surge in Australia – with a consequent rise in home loan rates – ignore key differences between the two economies.
Source: FinancialReview - 🏆 2. / 90 Read more »

Fate of Nazi-looted Pissarro to be decided by US supreme courtThe legal battle over the painting, in the hands of a Madrid museum, has spanned more than 15 years They'll probably want to hand it back to the NAZIs.
Source: GuardianAus - 🏆 1. / 98 Read more »

US and Russia to hold talks on Ukraine in potential sign ‘diplomacy is not dead’US secretary of state Tony Blinken to meet with foreign minister Sergei Lavrov amid fears of Russian attack on Ukraine
Source: GuardianAus - 🏆 1. / 98 Read more »