This lucrative situation for banks spells a cost for U.S. taxpayers. Interest payments the Fed makes on bank reserves are a liability for the central bank.
December's inflation report is crucial for Fed's decisions, economists predict 3.2% increase in CPI, with potential for rate cut in March. Market and Fed will closely monitor inflation for future decisions.
Tuesday on Wall Street was marked by a subdued trend in major equity indices as investors remained cautious ahead of key inflation data scheduled for release on Thursday and the kick-off of the earnings season.
Corporate outlooks for 2024 could decide whether market rally resumes in JanuaryEquity markets remain under pressure as investors await 4th-Q earnings to guide whether November-December rally can be resumed.
The Nasdaq 100 ended the first week of 2024 on a positive note, ending a five-session losing streak, despite volatile trading and conflicting economic data.