The Fed will raise its tone, Jerome Powell is expected next, Morning meeting

The Fed will raise its tone, Jerome Powell is expected next, Morning meeting


D-Day for the US Federal Reserve, which is preparing, unless there is a huge surprise, to raise interest rates by 50 basis points and indicate the next reduction in its balance sheet. In this expectation, futures on the Cac 40 index indicate a limited drop of 0.1% to 0.2% in the opening.

The Fed will issue its monetary policy statement at 8 p.m. before Jerome Powell’s traditional press conference half an hour later. The US Federal Reserve is expected to announce the biggest tightening since May 2000, raising the Fed’s capital rate by 0.75% to 1% and announcing that it is preparing to cut its balance sheet, currently around 9,000. billions of dollars, starting in June at a rate of $ 95 billion a month.

“Faster, louder”

The Fed chairman is expected to boost market expectations, which are based on additional interest rate hikes, and will be careful not to lose control, as some FOMC members have argued for 75 basis points. His remarks to the IMF about the need to move faster and harder on lower interest rates to curb inflation have raised fears about the magnitude of the move at a time when the global economy is entering a phase of continual slowdown.

JOLT statistics, which measure job vacancies in the United States, revealed that the number of job vacancies rose to 11.5 million in March, reflecting strong labor market tensions as well as wage inflation. ADP Employer Services is due to release its private employment survey in the US at 2:15 p.m., which will indicate a slight slowdown in job creation to 383,000 in April, after 455,000 in March.

Solvay raises its EBITDA forecast

However, before that, S&P Global will have revealed at 10 a.m. the PMI service activity index in the euro area, which should have improved thanks to the recovery of some sectors such as tourism and catering with the easing of health constraints. It will follow at 4 p.m. the corresponding ISM survey in the United States.

Solvay raised the underlying operating profit target (EBITDA) target for 2022 after posting record results well above analysts’ expectations for the first quarter.

EDF announced a strong increase in turnover in the first quarter, fueled by high electricity and gas prices, but recalled that this performance would have only a “limited” impact on its gross surplus (Ebitda) due in particular to falling production.

Neoen reaffirmed its targets for financial results and production and reported an increase in net sales for the first quarter due to a 20% increase in electricity generation.


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