Advertisement
New Zealand markets closed
  • NZX 50

    11,744.39
    +2.92 (+0.02%)
     
  • NZD/USD

    0.6113
    +0.0025 (+0.42%)
     
  • NZD/EUR

    0.5629
    -0.0001 (-0.01%)
     
  • ALL ORDS

    8,007.10
    +47.60 (+0.60%)
     
  • ASX 200

    7,745.60
    +46.90 (+0.61%)
     
  • OIL

    79.81
    +1.55 (+1.98%)
     
  • GOLD

    2,091.60
    +36.90 (+1.80%)
     
  • NASDAQ

    18,302.91
    +259.06 (+1.44%)
     
  • FTSE

    7,682.50
    +52.48 (+0.69%)
     
  • Dow Jones

    39,087.38
    +90.99 (+0.23%)
     
  • DAX

    17,735.07
    +56.88 (+0.32%)
     
  • Hang Seng

    16,589.44
    +78.00 (+0.47%)
     
  • NIKKEI 225

    39,910.82
    +744.63 (+1.90%)
     
  • NZD/JPY

    91.6610
    +0.4010 (+0.44%)
     

Fed will need to be ‘really careful’ on forward guidance: Strategist

Expectations on the Fed’s next move for interest rates have been a mixed bag in recent weeks. From bets on a 50-basis point hike, to no hike at all, to a view of a 25 basis point rate hike.

The expectation whiplash kicked into high gear after the sudden bank failures- sending a wave stress throughout the banking system.

“The Fed is going to have to be really careful about forward guidance here and potentially not give a whole lot of it because they're not omnipotent. They don't know what's coming down the pike,” says Chris Konstantinos, RiverFront Investment Group Chief Investment Strategist.

Markets will be eager to see the Fed’s tone as they face tensions on financial stability and the risk of inflation.

“They have to strike a balance. I think if their message is too far towards price stability, or to much towards financial stability, or inflation stability- too much in either direction- I think is going to be tough for the market to take,“ says Konstantinos

Yahoo! Finance's Julie Hyman and Brad Smith speak with Chris Konstantinos in a full interview here.

Key video moments:

00:00:14 Fed guidance

00:00:52 Fed striking a balance

00:01:21 Rate hike pause