CDS Crypto News FED News: Federal Reserve Expected to Hold Interest Rates Steady Amid Inflation Concerns
Crypto News

FED News: Federal Reserve Expected to Hold Interest Rates Steady Amid Inflation Concerns

319
Fed News Federal Reserve Expected To Hold Interest Rates Steady Amid Inflation Concerns

FED News: Federal Reserve Expected to Hold Interest Rates Steady Amid Inflation Concerns

The United States Federal Reserve is expected to hold interest rates steady in Wednesday’s press conference, maintaining the benchmark lending rate between 5.25% and 5.50%.

Similar to India’s Monetary Policy Committee of the Reserve Bank of India, the Federal Open Market Committee (FOMC) is tasked with reviewing U.S. economic conditions to shape monetary policy.

Attention is also focused on U.S. inflation data, with expectations of a slight decrease in headline consumer price inflation for the past month. A Reuters opinion poll indicates that economists anticipate a drop in headline consumer price inflation to 0.1% from the previous month’s 0.3%. This inflation data will be released before the Fed’s announcement.

What do economists say about the likelihood of a U.S. Fed rate cut?

Analysts suggest that the U.S. central bank is not expected to change its policy rate in the upcoming meeting scheduled for July. However, the stronger-than-expected non-farm payroll data from Friday has raised concerns about persistent inflation alongside robust economic growth, according to Reuters. This development is reflected in the Fed’s cautious approach to its policy review, as noted by financial services group HSBC.

Ahead of the announcement, Indian shares opened higher today, driven by gains in IT stocks, which are sensitive to U.S. interest rate policies. These stocks rose by 1.25%, according to the data.

While the policy rate is expected to remain unchanged, the focus will be on whether the committee adjusts its forecasts for potential rate cuts later this year.

Kieran Williams, head of Asia FX at InTouch Capital Markets, told Reuters that the consensus appears to be a reduction in the projected number of rate cuts for 2024, from three to two.

Additionally, a Reuters report noted that the probability of a rate cut announcement by the Fed in September has decreased to 56% from 78% a week ago.

Fed News Federal Reserve Expected To Hold Interest Rates Steady Amid Inflation Concerns
Written by
Zeynep Öztürk

Zeynep Öztürk, born in 1994 in Mardin, is a journalist, writer, and SEO expert. She specializes in digital media and content strategies. With experience in news writing and SEO optimization, she creates content that reaches a wide audience.

Leave a comment

Leave a Reply

Related Articles

Cardano in the Red: Can ADA Break Through Resistance Amid Market Fear?

Cardano (ADA) struggles with resistance levels as Bitcoin declines; key support zones...

Treasury Secretary Bessent: Market Corrections Are Healthy, Signaling No Immediate Policy Intervention

U.S. Treasury Secretary Scott Bessent downplayed concerns over recent asset market declines,...

Bank of Korea’s Stance on Bitcoin and Foreign Exchange Reserves

South Korea's central bank rejects Bitcoin as part of foreign exchange reserves...

Jameson Lopp Slams Quantum Recovery: A Threat to Bitcoin?

For more information about Jameson Lopp slams quantum recovery, please visit CDS.