How will the market react to the Federal Reserve’s decision to raise rates?
The Federal Reserve will begin to raise interest rates in September and have the most to lose by the move if it decides to delay its decision until after the holidays.
Investors will see the biggest gains on the day the Fed moves, which would push the stock market to new highs, said Jefferies analyst Chris Gonsalves.
“We’re not sure how much volatility this is going to generate, but the market is looking at an increase in market capitalization,” Gonsale said.
“It’s not going to be a huge amount.
It’s a very small increase.”
Investors are hoping the Fed will ease its stimulus program in the wake of the Great Recession, which has seen a surge in the unemployment rate to nearly 7% and a steep decline in inflation to about 1.7%.
The Fed has been pushing the economy through an austerity program, which is intended to boost spending and spur growth, as it looks to boost the economy’s recovery.
However, the program has had its drawbacks.
The Fed is currently at the bottom of a range of economic indicators.
For instance, the central bank has not lowered its benchmark interest rate since the summer of 2016.
The stock market is down 7% from its peak in September, and the economy has shrunk.
Investors are also concerned about how much the Fed would pay in interest if it raises rates, given its record low bond yields.
If the Fed raises rates this year, it would be a historic first, and it would almost certainly be met with strong opposition from Republicans in Congress, as well as a potential government shutdown.
The Federal Deposit Insurance Corporation is also likely to play a role in the Fed’s decision, Gonsales said.
The bank, which oversees $3.3 trillion in deposits, has long been criticized for the low quality of its work and the large amount of risk it carries.
A lack of transparency around its finances also is a concern, according to Gonsalia.
“The F.D.I.C. has not been forthcoming about its holdings and the quality of the products they sell,” he said.
If Congress and the White House decide to impose a delay in the rate hike, it could affect the market and potentially force investors to buy shares of companies that have been on the market for months.
“A delay of the rate increase will lead to higher volatility, which could result in higher share prices, which can also affect the stock price,” Gontales said, adding that the higher volatility could force a spike in stock prices.
The market is expected to be buoyed by the announcement of the Fed, but it will be hard for the stock to gain as the Fed decision affects the rest of the market.
“I think the stock is going the way of the dodo.
If you’re expecting a massive correction, you’re going to get one,” said Gonsalysts co-investor, Mike McAllister.
“You’re going with the Dodo, you’ve been lied to.
You have a very low-hanging fruit.
I think the market has been fooled.
If it continues to do that, it will end up being a real loser.”
The first-ever US coffee futures contract – Facebook
Facebook is offering to trade a $1 billion US coffee contract that was first unveiled in 2015.
The offer, which will be made on Wednesday and could become available for the public as soon as Thursday, is a joint venture between the Facebook and US futures exchange, the Nasdaq-100, according to Reuters.
Facebook is hoping to increase its stake in the futures market.
The contract will be a $5 billion USD investment from the US-based Facebook.
Facebook will be the sole holder of the contract and will own 50 percent of the exchange.
The US-listed Nasdaq futures contract will trade on the Nasco platform and be available to trade on both the Facebook Platform and Nasdaq, the website reported.
The exchange has also partnered with the New York Stock Exchange, which is offering the contract for trading on the NYSE and NYSE AM.
The Facebook partnership is a “game changer”, said Nasdaq president and chief executive officer John Gilder.
“Facebook is the leader in this space, and we’re proud to partner with them,” he said.
“It is a game changer for our futures market because we have a huge amount of capital in this area.
It will allow Facebook to take advantage of the vast amount of liquidity that the exchange has.”
The Facebook offer is expected to raise at least $10 billion for Facebook.
In February, Facebook said it was buying back about $8 billion worth of its shares to shore up its share price, as it was in the midst of a price correction.
In the lead-up to the Facebook acquisition, investors were worried that the social network would be sold, as the firm was expected to go public.
The Nasdaq is a virtual marketplace for trading futures contracts and options on publicly traded companies.
Facebook is seeking to become a dominant player in the space, which currently has just two major exchanges.
The company’s new partnership with Nasdaq could help it take the next step in the market.
