Investors await the U.S. Federal Reserve for guidance on the U.S. central bank’s future path of interest rates with a gradual reopening of the economy in sight.
Key Points
- Investors await the U.S. Federal Reserve for guidance on the U.S. central bank’s future path of interest rates with a gradual reopening of the economy in sight.
- U.S. first quarter GDP growth number
- U.S. coronavirus deaths surpass Vietnam War [3]
- Japan’s markets were closed for a Showa Day.
“We remain concerned to the extent that Fed liquidity can offset systemic risks in credit markets.” said Matthew Sherwood, head of investment strategy at Perpetual. [1]
“It doesn’t look like the Fed will raise interest rates beyond 0% until well-past the pandemic, which we think might be around 2023,” said Jim Caron, head of global macro strategies at Morgan Stanley Investment Management. “The market is pricing a recovery that starts in Q3, but there’s wide variability, and we need the Fed to give its input.” [2]
Lockdown easing hopes