Fed rate expectations

No government in power will want to responsible for choosing the hard road necessary for the good of future citizens until they have exhausted every magic trick in the bag( no options left) and even then, politicians want their cake and eat it too (pension for life) so this could go on for quite some time.

Government's have the capacity to avoid the "hard road". It's commitment that they're lacking as parties on all sides have spent decades promoting themselves fallaciously as the "Party of fiscal responsibility or restraint". As a result the electorate as a whole expects and demands government fiscal restraint because on the whole voters don't know any better when in fact it's actually the problem.
 
Fairly dull viewing, I guess the most interesting thing is the huge change in sentiment from a month ago and talk in some sectors of the media that rate cuts are now some time off. I haven't heard an update from the camp that were predicting 3 or 4 cuts this year lately.

Screenshot 2025-05-16 at 6.27.05 am.png
 
Whilst central banks and local banks are cutting rates, Standard Chartered Bank Singapore has raised their savings account interest rate from 6.05% to a whopping 8.05%.

Hmmmmm, are they in trouble? Do they need fast liquidity? Do they know something we don’t? Remember this is a Singaporean bank.
 
Hmmmmm, are they in trouble? Do they need fast liquidity? Do they know something we don’t? Remember this is a Singaporean bank.

Probably nothing more than a promo drive in partnership with some other financial entities, there's a lot of hoops and cash to be tipped in in order to get the bonus rates:

Screenshot 2025-06-17 at 8.10.50 am.png
 
There's a Fed meeting in 5 days, and despite Trump's tantrums the market and the Chair are cautious because the strong growth figures are looking inflationary, that means no cuts and no end in sight to QT:

View attachment 95816

https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html

Trump is not helping his " cut the damn rate " narrative, when his next comment is how Strong & Growing the US Economy is. Strong & growing is possibly an overheating economy that needs a rate rise :oops:
 
Back
Top