{"id":63932,"date":"2022-09-19T09:00:55","date_gmt":"2022-09-19T13:00:55","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=63932"},"modified":"2022-09-19T09:01:04","modified_gmt":"2022-09-19T13:01:04","slug":"coffee-with-greta-what-will-the-fed-do","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/09\/19\/coffee-with-greta-what-will-the-fed-do\/","title":{"rendered":"Coffee With Greta: What Will the Fed Do?"},"content":{"rendered":"

DJIA Futures: <\/b>-231 (-0.7%)<\/span><\/p>\n

SPX Futures: <\/b>-27 (-0.7%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-79 (-0.7%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are falling further today as a new week of trade begins focused on the Fed.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Fed Week Kicks Off<\/span><\/h2>\n

Stocks are set to open lower as the market turns its focus to this week\u2019s Fed meeting.\u00a0<\/span><\/p>\n

The Central Bank begins its two-day policy meeting on Tuesday and will release the rate hike decision Wednesday at 2:00 p.m. ET.\u00a0<\/span><\/p>\n

CME Group\u2019s <\/span>FedWatch<\/span><\/a> Tool shows the market sees an 80% chance of another 75bps hike and a 20% chance of a 100bps hike.<\/span><\/p>\n

The increased expectations come after inflation unexpectedly picked up in August.\u00a0<\/span><\/p>\n

The Fed Chair has said Americans will have to experience some \u201ceconomic pain\u201d in order to get inflation under control.\u00a0<\/span><\/p>\n

Treasury Yields Surge Ahead of Fed Rate Hike<\/span><\/h2>\n

Treasury yields are rallying today in anticipation of another large rate hike from the Fed this week.\u00a0<\/span><\/p>\n

The 2-year yield is up 6 basis points at 3.93% while the 10-year yield is up 4 basis points at 3.5%.\u00a0<\/span><\/p>\n

The 10-year hit a high of 3.508% earlier this morning, its highest level since 2011, and the 2-year jumped to its highest since 2007 at 3.94%.<\/span><\/p>\n

Yields move inversely to prices, surging higher as traders sell off bonds.\u00a0<\/span><\/p>\n

Oil Prices Fall as Demand Fears Jump<\/span><\/h2>\n

Oil prices are falling today as demand fears take over.\u00a0<\/span><\/p>\n

West Texas Intermediate crude futures are down 3.4% to $82 bbl while Brent crude futures are down 3% to under $89 bbl.<\/span><\/p>\n

Prices have been under pressure ahead of the Fed\u2019s meeting this week as continued rate hikes are expected to put more pressure on the economy.\u00a0<\/span><\/p>\n

But the market still has supply concerns hanging over its head with the EU\u2019s sanctions on Russian oil approaching in early December.<\/span><\/p>\n

Housing Market In Focus<\/span><\/h2>\n

This will be a big week of data for the U.S. housing market which has slowed dramatically as mortgage rates rise.\u00a0<\/span><\/p>\n

The National Association of Homebuilders releases its September sentiment index at 10:00 a.m. ET today.\u00a0<\/span><\/p>\n

Economists expect the index to fall 2 points to 47 after confidence slipped into negative territory for the first time since May 2020 in August.\u00a0<\/span><\/p>\n

Builders already squeezed by high material costs and supply shortages are now struggling with slower buyer demand due to higher rates.<\/span><\/p>\n

The Census Bureau reports August housing starts and building permits Tuesday morning and the National Association of Realtors existing home sales report will be out on Wednesday.<\/span><\/p>\n

In Case You Missed It<\/span><\/h2>\n
    \n
  • The University of Michigan consumer sentiment index rose to 59.5 in September from 58.2 in August. That was lower than economists\u2019 expectations for 60 and down sharply from 72.8 a year ago. The survey showed Americans expect inflation to still be at 4.6% one year from now and 2.8% five years from now.<\/span><\/li>\n
  • FedEx <\/b>(FDX) suffered its largest one-day decline on record Friday, plunging 21.4%. The drop came after the shipping giant missed expectations in the latest quarter and withdrew its full-year guidance. FedEx cited weaker global shipping demand for the move with the CEO predicting a \u201cworldwide recession\u201d.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

    DJIA Futures: -231 (-0.7%) SPX Futures: -27 (-0.7%) NASDAQ Futures: -79 (-0.7%) Good morning friends! Futures are falling further today as a new week of trade begins focused on the Fed. Let\u2019s get right to it! Fed Week Kicks Off Stocks are set to open lower as the market turns its focus to this week\u2019s Fed meeting.\u00a0 The Central Bank begins its two-day policy meeting on Tuesday and will release the rate hike decision Wednesday at 2:00 p.m. ET.\u00a0 CME Group\u2019s FedWatch Tool shows the market sees an 80% chance of another 75bps hike and a 20% chance of a 100bps hike. The increased expectations come after inflation unexpectedly picked up in August.\u00a0 The Fed Chair has said Americans will have to experience some \u201ceconomic pain\u201d in order to get inflation under control.\u00a0 Treasury Yields Surge Ahead of Fed Rate Hike Treasury yields are rallying today in anticipation of another large rate hike from the Fed this week.\u00a0 The 2-year yield is up 6 basis points at 3.93% while the 10-year yield is up 4 basis points at 3.5%.\u00a0 The 10-year hit a high of 3.508% earlier this morning, its highest level since 2011, and the 2-year jumped to its highest since 2007 at 3.94%. Yields move inversely to prices, surging higher as traders sell off bonds.\u00a0 Oil Prices Fall as Demand Fears Jump Oil prices are falling today as demand fears take over.\u00a0 West Texas Intermediate crude futures are down 3.4% to $82 bbl while Brent crude futures are down 3% to under $89 bbl. Prices have been under pressure ahead of the Fed\u2019s meeting this week as continued rate hikes are expected to put more pressure on the economy.\u00a0 But the market still has supply concerns hanging over its head with the EU\u2019s sanctions on Russian oil approaching in early December. Housing Market In Focus This will be a big week of data for the U.S. housing market which has slowed dramatically as mortgage rates rise.\u00a0 The National Association of Homebuilders releases its September sentiment index at 10:00 a.m. ET today.\u00a0 Economists expect the index to fall 2 points to 47 after confidence slipped into negative territory for the first time since May 2020 in August.\u00a0 Builders already squeezed by high material costs and supply shortages are now struggling with slower buyer demand due to higher rates. The Census Bureau reports August housing starts and building permits Tuesday morning and the National Association of Realtors existing home sales report will be out on Wednesday. In Case You Missed It The University of Michigan consumer sentiment index rose to 59.5 in September from 58.2 in August. That was lower than economists\u2019 expectations for 60 and down sharply from 72.8 a year ago. The survey showed Americans expect inflation to still be at 4.6% one year from now and 2.8% five years from now. FedEx (FDX) suffered its largest one-day decline on record Friday, plunging 21.4%. The drop came after the shipping giant missed expectations in the latest quarter and withdrew its full-year guidance. FedEx cited weaker global shipping demand for the move with the CEO predicting a \u201cworldwide recession\u201d.<\/p>\n","protected":false},"author":41,"featured_media":63940,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-63932","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/63932","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=63932"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/63932\/revisions"}],"predecessor-version":[{"id":63942,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/63932\/revisions\/63942"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/63940"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=63932"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=63932"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=63932"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}