Innovator Growth 100 Power Buffer ETF - Jan

The Fed has decided to increase the interest rate after all. For the time being, the risk of USD debasement trade will retreat. The next question is how many more rate hikes are on the horizon?

Singapore stocks took a breather as Bank shares and even reits rose slightly after the official rate hike by the FED last night. I think Reits will start to stabilise for some time, but the worst is yet to be over as officials still want a consensus 1 more rate hike by this year.

So the FED does indeed raise its interest rate by 25basis points, looks like I was wrong about Warsh taking the risky stance of maintaining position. However, as expected, Trump took to social media to continue to pile pressure and express his desire for lower interest rate; this is the first time Warsh and Co took a decisive decision, let's see if they would continue Powell's legacy of maintaining independence or eventually succumbing to Trump's political will.

One rate hke decided unanimously is highly anticipated by the market. Dot plot with 16 out of 18, expectations of further monetary tightening, sending a very hawkish signal. Revaluation of AI companies and rate sensitive sectors like property and bond markets may take the hit. So sit tight, buckle up your safety belt, and bumpy ride ahead.

Personally, I didn’t thought that the stocks fell that much (yet) after the rates announcement. I guess most people are bracing for further hikes too

It looks like the Fed has decided to listen to the market and give them what they want. The Fed is not ‘independent’ after all! If they don’t listen to the president, they listen to the market.

Well looks like it is the same old Fed after all! Haha…..for all the chest pumping and assertions that ‘this Fed’ is different from its predecessors, they are still following what ‘the market’ wants.

The dot plots are kind of redundant. Things can change quickly week to week. But I am still surprised it's a pretty large majority thinking of another rate hike this year. The more effective way to curb inflation is to replace the current POTUS.

The Fed raised rates by 25 bps to 3.75%-4.00%, with a unanimous 12-0 vote — the first hike since 2023. The dot plot shows: 16 of 18 officials expect at least one more rate hike this year.

Chairman Wash cited a strong economy, inflation above target, and Middle East tensions as reasons for the unanimous vote.

The next two Fed meetings before year-end are also expected to discuss rate hikes. Another 25-bps increase cannot be ruled out.

The US stock market has already priced in the expectation of this rate hike, with calm market performance.

Frankly speaking, I did not expect the Fed to raise rates. It feels like Warsh is going against what Trump would have wanted. I think we will see more tensions between them very soon 🫢🫣.

Anyway, some good news closer to home. Enough of rate hike.

Databricks and Anthropic are both investing in Singapore! 🇸🇬 ( today news)

Databricks will invest over US$350 million and double its local headcount. It is also partnering with IMDA to train 20,000 people in industry relevant data and AI skills.

Anthropic will open its Singapore office this October, with the investment amount yet to be disclosed. I believe it going to be big one like openAI.