NEW YORK, May 28 — Bad news may once again be good news on Wall Street, as signs of slowing US growth fan hopes that the Federal Reserve may not need to tighten policy as much as previously expected.
In the near-term, however, some investors believe a nascent slowdown could bolster the case for the Fed to pull back on an aggressive monetary policy tilt that has unnerved investors and helped drive the S&P 500 .SPX index to the cusp of the 20 per cent decline that many call a bear market. . Concerns over the impact of higher rates at a time when inflation may have peaked will likely mean the central bank will pause its tightening in September, leaving its benchmark overnight interest rate in a range of 1.75 per cent to 2 per cent if financial conditions worsen, BofA strategists said in a note.
Signs that growth may be slowing have helped bolster Treasury prices, suggesting investors are increasingly looking to bonds for safety rather than as assets that could be at risk during times of high inflation, said Anders Persson, chief investment officer of global fixed income at Nuveen. US data yesterday also showed price increases may be slowing. The personal consumption expenditures price index rose 0.2 per cent, the smallest gain since November 2020, after shooting up 0.9 per cent in March.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: malaymail - 🏆 1. / 86 Read more »