Market traders are almost certain the Federal Reserve will lower its benchmark interest rate by a quarter percentage point on Wednesday, despite ongoing inflation concerns. The decision comes as the economy shows signs of strength, with a 3% growth rate and a robust labor market. However, the potential rate cut is facing scrutiny, with some experts, including former Kansas City Fed President Esther George, advocating for a wait-and-see approach.
Futures market traders are pricing in a near-certainty that the Fed on Wednesday will lower its benchmark overnight borrowing rate by a quarter percentage point.
That's not what is likely to happen, however, when the Federal Open Market Committee, the central bank's rate-setting entity, announces its policy decision Wednesday. , the Fed's preferred inflation gauge, ticked higher in November to 2.5%, or 2.9% on the core reading that excludes food and energy.and the committee. Former Boston Fed President Eric Rosengren also recently told CNBC that he would not cut at this meeting.
One of those tools is the dot-plot matrix of individual members' expectations for rates over the next few years. That will be updated Wednesday along with the rest of the Summary of Economic Projections that will include informal outlooks for inflation, unemployment and gross domestic product.
Federal Reserve Interest Rates Inflation Economic Growth Labor Market
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
December rate cut baked in, but Fed to signal cautious about rate-cut path aheadDecember rate cut baked in, but Fed to signal cautious about rate-cut path ahead
Read more »
Fed to flag slower pace of easing, Jan rate cut no longer expected- Goldman SachsFed to flag slower pace of easing, Jan rate cut no longer expected- Goldman Sachs
Read more »
Fed members back gradual rate cuts should economy evolve as expected: Fed MinutesFed members back gradual rate cuts should economy evolve as expected: Fed Minutes
Read more »
European markets open higher ahead of expected rate cut from the European Central BankEuropean markets opened higher as regional investors await the last monetary policy decision from the European Central Bank (ECB) this year.
Read more »
Goldman: December 25bp rate cut expected, but easing may slow soonerGoldman: December 25bp rate cut expected, but easing may slow sooner
Read more »
Fed members back gradual rate cuts should economy evolve as expected: FOMc MinutesFed members back gradual rate cuts should economy evolve as expected: FOMc Minutes
Read more »