The race for the trash has hit a bump. Stocks fell again last week as the early-year rally, led by rebounds in 2022 speculative-grade losers, ran into resistance from higher interest rates expected by the Federal Reserve on the back of inflation readings. persistent and few signs that growth is faltering.
Economists at a number of major Wall Street banks, including Goldman Sachs, Bank of America and Citigroup, raised their forecasts for the eventual peak in the central bank’s target range for the overnight federal funds rate, to 5.25% to 5.50. %, effectively bringing them in line with the fed funds futures market. Deutsche Bank now expects a single point peak of 5.6%, half a percentage point higher than its previous estimate, and among the highest forecasts.