Daily Price Movement / General Discussion, page-46558

Perhaps this thread more apt for this. For those investors unaware, the all important Fed as expected, kept rates unchanged overnight. Perhaps surprisingly, given prior expectations of unchanged, equities saw a bit of a relief rally in the afternoon following the announcement.

Importantly from an interest rate perspective, ambiguously of course, to leave themselves a little wiggle room, he also effectively confirmed little chance of a 2023 hike and into early 2024:

"The Fed held rates steady in a range of 5.25%-5.50% as the central bank waits to see how its aggressive credit tightening campaign filters through the US economy. When asked about a previous projection by the Central Bank for one more rate hike this year, Powell noted that the Summary of Economic Projections is "not a promise or plan of the future. "Bets on future rate hikes shifted on the news. Investors have priced in a 73% chance the Fed holds rates steady through its January meeting, according to the CME FedWatch Tool. A day prior, markets had priced in just a 59% rates would be held steady through that meeting."

https://finance.yahoo.com/news/stock-market-news-today-stocks-rally-tech-surges-after-fed-leaves-rates-unchanged-200646451.html

Powell was far clearer on the economic prospects of the US economy:

"The answer is no," Fed Chair Jerome Powell said when asked if the central bank staff added a recession back into their forecast. "The staff did not put a recession back in."

10 year treasuries traded are trading under 4.75% as I write after touching 5% in recent weeks.

The yield curve (not quite so simply extrapolated) does loosely confirm Forbes recently expressed notions:

"Markets broadly anticipate a 1% decline in the Fed funds rate to between 4% and 5% by the end of 2024. Yet, any rate decline is loaded toward the second half of 2024, with cuts most likely starting in June or later."

https://www.forbes.com/sites/simonmoore/2023/10/17/markets-see-measured-fed-rate-cuts-in-2024/?sh=5965914d1741

Any gains in ZIP's share price today likely to be related to this news and improving perceived economic fortunes in the US economic, or rather receding of potential risk expectations to them from Powell's comments.