Latest Fed Rate Outlook Has Mixed Impact on US Stock Markets

Latest Fed Rate Outlook , Has Mixed Impact , on US Stock Markets.

Business Insider reports that U.S. stocks saw mixed results as investors reacted to the latest Federal Reserve interest rate outlook.

Business Insider reports that U.S. stocks saw mixed results as investors reacted to the latest Federal Reserve interest rate outlook.

On January 9, San Francisco Fed President Mary Daly, along with Atlanta Fed President Raphael Bostic, said the central bank is likely to raise rates past 5%.

On January 9, San Francisco Fed President Mary Daly, along with Atlanta Fed President Raphael Bostic, said the central bank is likely to raise rates past 5%.

According to Business Insider, they also said the Fed is expected to keep rates raised as a means of combating record-high inflation.

CME FedWatch suggests 80% odds that another 25-basis-point hike is on the way in February.

Investors are also eagerly anticipating the December Consumer Price Index report due out on January 12.

That report is a key inflation measure that will have an influence on the central bank's upcoming policy decisions.

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At the closing bell on January 9, the S&P 500 ended the day down 0.08%, the Dow Jones Industrial Average ended down 0.34% and the Nasdaq Composite went up 0.63%.

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Meanwhile, Bank of America has warned that stock valuations remain too high and the market risks dropping by as much as 30%.

Meanwhile, Bank of America has warned that stock valuations remain too high and the market risks dropping by as much as 30%.

Morgan Stanley has warned that the S&P 500 could slip an additional 22%.

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Morgan Stanley has warned that the S&P 500 could slip an additional 22%.

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However, according to Moody's economist, the chances of the U.S. avoiding a recession are growing as the number of layoffs has been below expectations.