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Mood Improves On Wall Street As 100bp Hike Looks Less Likely–Market Talk

Dow Jones Newswires–Markets get bullish as the prospect of an 100-basis point interest rate increase wanes, but volatility remains in store, AmeriVet’s Gregory Faranello tells WSJ. “Fedspeak laid down last week tempered the notion of a 75bp,” rate increase next week, he says, adding that it is likely to get into restrictive territory eventually. Faranello argues that the Fed has been chasing the markets as inflation takes hold of the world economy, but there are signs that inflation expectations are improving. “There’s something in the markets that says the Fed is being successful.” Faranello expects markets to “continue to be volatile,” while the Fed reacts to data and adjusts monetary policy.

Paulo Trevisani–|@ptrevisani