Rate hike expected

Extract: Federal Reserve policy-makers started a two day meeting yesterday. Markets is expecting a quarter percent point rise to 5.25 percent. However, Washington (reuters) reported that interest rate futures indicate a small chance of half points rasie.

On a poistive note, some analysts pointed out the Fed has ended several previous rate hike cycles with increases of that scale. But it had also highlighted that there is clear evidence of a slowing economy, and many economists believe the odds of a half point boost are slim. They are likely to focus on language use in the policy statement to express concern over inflation. If so, another hike is likely to on the card.

Okay, the expert are telling us, it is likely to be 0.25 rate hike and another on August due to concern over inflation. On the other hand, half point rate hike have a slim chance too, some analyst thinks it is good, as it may be an end to the rate hike cycle where many rate hike ended in such a scale previously.

Now what? may be @
0.25 market is expecting - so there are selling but may not be strong
0.50 market may dump, but since many rate hike ended at 0.50 increase previously, it may be good to monitor closely for some quality buying.

what will I do? Don't know leh... oops!!! ;P