Focus on FOMC, 0.5% rate hike or asset compression focus = US stock market this week | Reuters

The Federal Open Market Committee (FOMC), which will be held on March 3-4, will be the hottest topic in the week-long US stock market starting May 2. The photo is a sign on Wall Street. Taken in April last year (2022 Reuters / Carlo Allegri)

[New York, 29th, Reuters]-The Federal Open Market Committee (FOMC), which will be held on the 3rd and 4th, will be the main focus of the week-long US stock market starting May 2. At this meeting, the Federal Reserve is expected to raise policy rates and clarify plans to tighten monetary policy to curb inflation.

The S & P Comprehensive 500 Index has fallen 13.3% so far in 2022 due to caution about the Fed’s growing hawkish stance. The rate of decline in the first four months of the year is the highest since 1939.

Investors have raised expectations about how aggressive the Fed will tighten, but fears that it may be difficult to sustain the economy in response to the highest inflation rate in about 40 years. The voice is rising.

“The uncertainties are likely to keep the market volatile and volatile for the foreseeable future,” said Randy Frederick, vice president of trading derivatives at Charles Schwab.

The FOMC is widely expected to raise the policy rate by 0.5 percentage points. Chair Powell’s remarks will be watched over future interest rate trends, balance sheet compression plans and awareness of inflation.

“If the Fed expects high levels of inflation to continue and doesn’t anticipate a slowdown, it will be a cause for concern for investors,” said Michael Alone, chief investment strategist at State Street Global Advisors. Pointed out. “In other words, it is possible that the rate hike and monetary tightening that incorporates the market will continue to be more aggressive.”

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Attention is also focused on the settlement of accounts. Pfizer, Starbucks, ConocoPhillips and others will announce in the week starting from the 2nd.

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