Fed decides to pause: Impact on investors, markets

Fed decides to pause: Impact on investors, markets

The Federal Reserve kept interest rates unchanged at its June meeting on Wednesday. Yahoo Finance spoke to experts, analysts, and reporters regarding the impact on investors and how the markets are reacting to the Fed's decision.Yahoo Finance's Fed reporter Jennifer Schonberger broke down the Fed's statement. Schonberger said, "The Federal Reserve holding rates steady in the current range of 5 to 5 and a quarter percent, but raising interest rate projections to a new peak of 5.6 percent." Jordan Jackson, JPMorgan Asset Management Global Market Strategist, and RJ Gallo, Federated Hermes Senior Portfolio Manager, further analyzed the Fed's statement. Jackson said, "I don't think they need to keep raising rates. I think they should be done."Gallo added, "The Fed is setting a little bit of a hawkish pause here and that confirms the markets' expectations."Yahoo Finance Markets reporter Jared Blikre discussed the market reaction. Blikre said, "If this is in fact a hawkish pause, we would expect to see potentially a stronger dollar along with yields going up and that's what's been happening." Yahoo Finance's Fed reporter Jennifer Schonberger returned to discuss Fed Chair Jerome Powell's comments on the decision. Schonberger said, "Fed Chair Powell saying that the Fed has not made enough progress on inflation ... that's why the committee sees 50 basis points more of rate hikes." Victoria Fernandez, Crossmark Global Investments Chief Market Strategist, thought that the Fed didn't give investors a "clear answer" for its path moving forward. Fernandez said, "I don't think we got a very clear answer as to what the goal was going forward." MacroPolicy Perspectives Founder and President Julia Coronado discussed the biggest takeaways from Powell's press conference. Coronado said, "Slowing the pace, he said that a bunch of times. And then the other thing is to hold the threat of rate hikes over the market for longer." Yahoo Finance's Alexandra Canal broke down the Fed dot plot, including projections for inflation and interest rates going forward. Canal said, "That does suggest that the Fed is going to raise rates two more times by 25 basis points." Video highlights: 00:00:03 - Yahoo Finance's Fed reporter Jennifer Schonberger 00:00:16 - JPMorgan Asset Management Global Market Strategist Jordan Jackson 00:00:33 - Federated Hermes Senior Portfolio Manager RJ Gallo 00:00:43 - Yahoo Finance Markets reporter Jared Blikre 00:00:57 - Yahoo Finance's Fed reporter Jennifer Schonberger 00:01:08 - Crossmark Global Investments Chief Market Strategist Victoria Fernandez 00:01:24 - MacroPolicy Perspectives Founder and President Julia Coronado 00:01:41 - Yahoo Finance's Alexandra Canal