💣A slower rate hikes, we bet🕹

As expected, the Fed raised the interest rate by 0.75% as it tried to tame inflation at its decades high. With the latest hike, the policy rate is around 2.25% to 2.5%. This is considered a neutral interest rate which would not stimulate or restrict the economy. 

Uncle Powell had not indicated straightforward guidance as he hammered on restoring price stability and commitment to the course. During the press conference, he maintained the idea that economic uncertainty remains high and that another 0.75% rate hike could still be possible at the Sept FOMC meeting. Until then, there are still numerous reports to gauge the economy’s health and inflation. 

Pika World continue to see a high rate environment.

⛳The state of the US economy🔭

Powell acknowledged that the economy is weakening coupled with persistently high inflation. However, analysts quickly note that while Uncle Powell did indicate that a slowdown in future hikes may be appropriate, it should not be taken as a dovish stance. 

Nonetheless, markets are taking Powell’s comment on a slowing economy as a potential catalyst for a slower rate hike and gave the market a boost as he maintained that the US isn’t in a recession with a strong, robust labour market. 

📱Meta Platform: A miss that isn’t that bad🗽

The company is battling a challenging advertising environment as competition for ad dollars and user time from TikTok continues. In addition, apple’s privacy change is still hitting the company, making it hard for online ad sellers to push for campaigns. 

Mark Zuckerberg had said that the company is slowing its investment pace and reducing some expenses as he expects the economy to slow. Revenue fell 1% from a year ago, a slight miss of Wall Street consensus. 

The forecast also signalled weakness in its core business. It expects a prolonged weak advertising environment, which also reflects a macroeconomic environment. Pika World will be exploring possible entry in a weakness. 

We are still waiting for more companies, such as Apple and Amazon, to release their earnings and maintain light in trading.