In the past, the Fed was based on the labor market data and also partly on the inflation data. In the meantime, people are looking more to Asia, and it has already been confirmed that interest rates will not be lowered in 2023.
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@EurieNet I think that we will not see an increase at the beginning of 2023 for the time being.
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@EurieNet What are they looking at in Asia? "Confirmed" hardly seems likely. No one knows what the labor market and economic growth will look like in six months' time.
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@svenleowe The economic growth currently expected at 4-5%, the Fed interest rates have to go over there. That's why the market expectation is also at 5-6% interest rates, of course the other data mentioned also take influence. If you don't believe me, you can take a look at the old news from 2018/19 (Before Corona) was shocked himself at that time, what the US by means of the Fed, has threatened everything.
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@svenleowe or Trump tried to bring China to its knees by means of sanctions and got all worked up, with the Fed trying to do this via interest rates. They went at each other very badly.
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