Fed officials released their stance on interest rates, with the likelihood of a rate hike in September falling back to 5%🗣️
U.S. household net worth increased by $5.5 trillion (+3.7%) in the second quarter of 2023, reaching $154.3 trillion, another record high. The increase in net worth was mainly due to a $2.6 billion increase in stock values, as well as real estate Value increased by $2.5 billion, as the U.S. real estate market recovered sharply amid a lack of supply as input costs for developers soared. In addition, Fed officials' speeches last week were actually more dovish than expected, with most talks indicating that policy rates were already at "restrictive levels" but that they would "take more action" if necessary; New York Fed President Williams said monetary policy is "in a good place," while the Chicago Fed president noted that the discussion is now shifting from how high policy rates should rise to how long they should stay there.
In addition, the well-known Fed observer Nick Timiraos wrote and published an article entitled "The interest rate stance of Fed officials is undergoing an important shift", arguing that the recent slowdown in wage growth is enough to shift the Fed's stance to a more balanced view; 9 The likelihood of a monthly interest rate hike has dropped back to 5%, while the market's view on the November meeting is still 50/50 based on interest rate futures pricing.
