In a recently published report, Moody’s Investors Service said that it expects the US Federal Reserve to take the policy rate to the range of 3.5-3.75% by the end of the year and above 4% by March 2023, as reported by Reuters.
Additional takeaways
"US and euro-area data confirm slowing economic momentum."
"US, euro-area interest-sensitive consumer, residential, business investment activity to continue to moderate over coming quarters."
"US real GDP growth of 2.1% expected this year and 1.3% in 2023."
"FOMC expected to continue with front-loaded rate increases in upcoming meetings."
"Periodic disruptions of gas supply from Russia will cause growth in the euro area to decelerate sharply."
"In the baseline scenario, euro area real GDP expected to grow 2.2% in 2022 and by 0.9% in 2023."
"Expecting ECB to embark on a hawkish monetary policy path over the course of its upcoming meetings in the euro area."
Market reaction
The EUR/USD pair showed no immediate reaction to this report and was last seen rising 0.55% on the day at 1.0274.