Hike for Hike – US UK

Market Review from Realm Investment Management – week ending 4th November 2022

There were three big events last week. Here’s what happened:

On Wednesday the Fed announced its latest interest decision – which was a further 0.75% hike. The signal from Chair Powell was that the central bank is likely to slow the pace of future increases but the level at which interest rates finally top could well be higher than the market currently anticipates. For those seeking clues as to when the Fed might pivot the message was made clear “it is very premature to think about a pause in our interest rate hiking cycle”…”we have some ground left to cover here — and cover it, we will.” US CPI data for October, due to be released on Thursday will help investors judge how well the Fed is doing in its efforts to tame inflation and the likely path for rates going forward.

Full report

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