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

314
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

15 March XRP Price Outlook: Will a Commodity Classification Change Everything?

For more comprehensive information on the 15 March XRP price outlook, please...

Mysterious Whale Shifts Focus to Chainlink: Is a LINK Surge Coming?

For more comprehensive information on the mysterious whale shifts focus to Chainlink,...

Dogecoin News- Dogecoin’s Potential Rebound: Are We Seeing the Bottom?

Dogecoin shows signs of a potential price reversal, with key indicators suggesting...

Is the Nasdaq 100’s Death Cross the Beginning of a Larger Market Crisis?

The Nasdaq 100 is nearing a death cross, raising concerns that a...