The Economic Uncertainty Continues: How Will the Federal Reserve’s Interest Rate Decisions Affect the Markets?

Investors ponder economic outlook as U.S. Treasury yields decline

When yields decrease, prices increase; this is a well-known relationship in the financial world. One basis point equals 0.01%, and when the yield of a treasury bond decreases by a basis point, the price of the bond increases. As investors closely monitor the latest data and comments from Federal Reserve officials to gauge the outlook for the economy, there is uncertainty surrounding when and how often the Fed will cut interest rates this year. Recent data has shown that durable goods orders rose more than expected in February, while consumer confidence has shown a decline in optimism about the economy.

Fed Governor Christopher Waller is expected to give remarks later on Wednesday, and Thursday will see the release of important data such as weekly initial jobless claims, the final reading of the US GDP for the fourth quarter, and consumer sentiment insights. With the markets closed for Good Friday, traders’ reactions to this data will have to wait until the following week. The most anticipated data of the week is set to be released on Friday, including

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