The Federal Open Market Committee (FOMC) is widely expected to cut interest rates by 25 basis points at its final meeting of 2023. While the move is almost certain, Chair Jerome Powell's comments on the future path of rates and economic outlook for 2025 will be closely watched by markets.
Tonight, the Federal Open Market Committee (FOMC) of the US Federal Reserve meets for the last time this year to decide on monetary policy . It would take a miracle for the FOMC to do anything other than cut interest rates by 25 basis points. Based on futures contracts, the market is 95% certain it will take such a step, and the vast majority of economists surveyed by Bloomberg also see it that way, Commerzbank’s FX analyst Volkmar Baur notes.
The market expects two further interest rate cuts next year, while the Fed had still been expecting four in its last forecasts. Lowering these expectations to three would make sense. There is room for manoeuvre, both to do more than the market is currently expecting and to further reduce the number of expected steps at the next round of forecasts. Therefore, it will depend very much on what Jerome Powell says about a possible pause in January and what the forecasts for the whole of 2025 show. A focus on the fact that many things are in flux and that one has to wait and see would be expected. A higher level of conviction in one's own forecasts and expectations, on the other hand, could cause the market to reprice again and put some pressure on the US dollar
Federal Reserve Interest Rates Monetary Policy Jerome Powell US Dollar
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.
Last set of data before the Fed interest rate meetingToday's inflation data for November will be the last data point before next week's FOMC meeting.
Read more »
Trump and Fed Chair Powell could be set on a collision course over interest ratesThough Powell became Fed chair in 2018, after Trump nominated him for the position, the two clashed often about the direction of interest rates.
Read more »
High Interest Rates Could Push Fed Chief Powell into Clash with TrumpFed chief Jerome Powell may clash with President-elect Donald Trump over high borrowing costs, according to analysts.
Read more »
'Just Like Gold': Fed's Powell Makes Crucial Bitcoin StatementFederal Reserve Chair Jerome Powell says that Bitcoin is competing with gold
Read more »
Crypto Market Awaits Fed Decision, Powell's Statement; What to ExpectMarkets will look to Fed's updated policy statement and Fed Chair Jerome Powell's press conference
Read more »
Fed Chair Jerome Powell can serve remainder of term, says Trump’s Treasury pick BessentTrump's pick for Treasury secretary said Powell could serve out his term.
Read more »