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ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

March 25, 2023 | Tech Talk for Saturday March 25th, 2023

Don Vialoux

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Donald Vialoux is author of the free blog Tech Talk, a daily investment report available during the past 20 years at www.timingthemarket.ca. Comments focus on the seasonal and technical outlook for equity indices, commodities and sectors. Mr. Vialoux has 53 years of experience in the investment industry and is a past president of the Canadian Society of Technical Analysts (CSTA).

The Bottom Line

Between a rock and a hard place! That’s where the Federal Reserve finds itself. The FOMC raised its Fed Fund rate by another 0.25% to 4.75%-5.00% on Wednesday as anticipated. Efforts to dampen inflation by raising the Fed Fund rates in recent months are working, but selected regional and specialty banks (e.g. Silicon Valley and Signature) are experiencing a severe squeeze on their interest rate spreads. At least six additional regional banks are thought to be on the “watch list” by regulators for default action due to a possible run on their assets. The Federal Reserve now is expected to “wait for additional data points” before deciding its next move. Trader focus is on news from the next FOMC meeting on May 3rd. Next significant data point is released this Friday when February core PCE Price Index is released.

 

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March 25th, 2023

Posted In: Tech Talk

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