The US Federal Reserve Bank is all set to announce its monetary policy decision on Wednesday, January 31. The Fed has spent nearly two years raising the interest rate to combat inflation.
The Federal Open Market Committee (FOMC) is underway and the minutes of the January 30-31 meeting will be released on February 21.
Owing to the reduced inflation, the Federal Reserve Bank has predicted three rate cuts in 2024, while some Wall street economists have forecasted five cuts this year. Jerome Powell's press conference will also be monitored closely because the FED chief could provide some hints as to how policymakers are considering when to lower interest rates.
Also Read: Federal Reserve holds rates steady, indicates three cuts in 2024
US markets are expecting a rate cut in May. Even while rate cuts could provide some respite to households and businesses with loans, Wall street experts expect FED to hold the rate constant this time.
Inflation in US had dropped in the recent months and the economy has remained resilient. As per data, the economy grew at a significantly faster rate in the fourth quarter than economists expected.
The growth also accelerated to 3.3% annual rate, following a 4.9% expansion in the July-September period. As per JOLTS survey, job opportunities in the United States surged unexpectedly in December while fewer Americans left their jobs.