© Reuters
Breaking News: The Federal Reserve is expected to maintain interest rates at a 22-year high for the third consecutive meeting. However, all eyes are on Fed Chair Jerome Powell and the announcement from the price-setting Federal Open Market Committee at 14:00 ET (19:00 GMT) on Wednesday. Powell will likely address the question of whether borrowing costs will be reduced early next year, providing critical insight into the central bank’s plans for the future.
During the press conference, Powell is expected to discuss the potential to lower rates from the current range of 5.25% to 5.50%. The release of the Fed’s quarterly “dot plot” will also be closely watched, as it provides a snapshot of officials’ interest rate expectations in the coming months, offering valuable clues about the direction of monetary policy.
Recent inflation data and a strong payrolls report have added to the uncertainty, with some suggesting that a more aggressive approach may be needed to rein in price increases. However, the Fed is tasked with ensuring that any policy changes are carefully balanced to prevent stalling the broader economy.
Despite the uncertainty, investor sentiment seems to be leaning towards the belief that interest rates have potentially reached their peak. According to Investing.com’s analysis, there is a 43% chance of a rate cut in March and a 50% chance in May next year, reflecting the market’s expectations for a potential shift in monetary policy.
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