Latest Fed Rate Outlook , Has Mixed Impact , on US Stock Markets.<br />Business Insider reports that U.S. stocks saw <br />mixed results as investors reacted to the <br />latest Federal Reserve interest rate outlook.<br />Business Insider reports that U.S. stocks saw <br />mixed results as investors reacted to the <br />latest Federal Reserve interest rate outlook.<br />On January 9, San Francisco Fed President Mary Daly, <br />along with Atlanta Fed President Raphael Bostic, said <br />the central bank is likely to raise rates past 5%.<br />On January 9, San Francisco Fed President Mary Daly, <br />along with Atlanta Fed President Raphael Bostic, said <br />the central bank is likely to raise rates past 5%.<br />According to Business Insider, they also said <br />the Fed is expected to keep rates raised as <br />a means of combating record-high inflation.<br />CME FedWatch suggests 80% odds <br />that another 25-basis-point hike <br />is on the way in February.<br />Investors are also eagerly anticipating <br />the December Consumer Price Index <br />report due out on January 12.<br />That report is a key inflation measure <br />that will have an influence on the <br />central bank's upcoming policy decisions. .<br />At the closing bell on January 9, the S&P 500 ended the day <br />down 0.08%, the Dow Jones Industrial Average ended <br />down 0.34% and the Nasdaq Composite went up 0.63%. .<br />Meanwhile, Bank of America has warned <br />that stock valuations remain too high and <br />the market risks dropping by as much as 30%.<br />Meanwhile, Bank of America has warned <br />that stock valuations remain too high and <br />the market risks dropping by as much as 30%.<br />Morgan Stanley has warned <br />that the S&P 500 could <br />slip an additional 22%. .<br />Morgan Stanley has warned <br />that the S&P 500 could <br />slip an additional 22%. .<br />However, according to Moody's economist, the chances <br />of the U.S. avoiding a recession are growing as <br />the number of layoffs has been below expectations.
