Sun, May 19, 2024

USD: Fed’s Rate Cut Meeting Today

The FOMC Meeting outcome is expected is 5.25%-5.50% no rate cuts in this meeting by economists. The main reason is higher wages, robust demand, inflation higher and unemployment rate lower, higher jobs rate. So US Dollar moves positive tone ahead of Today meeting.

XAUUSD is moving in the Descending triangle pattern and the market has reached the lower high area of the pattern

XAUUSD is moving in the Descending triangle pattern and the market has reached the lower high area of the pattern

Fed to Announce Monetary Policy Today

Today, the US Federal Reserve is set to announce its monetary policy decision following the Federal Open Market Committee (FOMC) meeting, which commenced on March 19 and ends on March 20. Fed Chair Powell will deliver the final announcement at 2:00 PM ET on Wednesday.

With inflation persisting, markets anticipate the Fed to maintain the current ‘fed funds rate’ target range between 5.25% and 5.50%. Despite no changes since July 2023, investors speculate the Fed may soon pivot to rate cuts.

“The March FOMC meeting is likely to bring little change to the Fed’s policy stance or outlook, with policymakers confident that inflation is on track to return to the 2% target. However, as disinflation persists and the labor market softens, rate cuts remain likely this year, with the first expected in June,” says Michael Brown, Market Analyst at Pepperstone.

In focus is the Summary of Economic Projections, featuring ‘dot plots,’ outlining rate forecasts. Analysts note that while Wednesday’s decision may not immediately impact interest rates, attention is on future rate movements. Hints could arise from the dot plots, providing insight into rate cut timing and frequency.

“We anticipate a potentially more hawkish bias at this FOMC meeting compared to consensus estimates. There is a possibility that the median projection may suggest two rate cuts this year instead of three,” says Amit Goel, Co-Founder and Chief Global Strategist at Pace 360.

FOMC meeting there will be a discussion on current monthly purchase min

José Torres, Senior Economist at Interactive Brokers, comments on Powell’s potential stance against rising inflation, noting market anticipation of rate cuts despite consecutive CPI increases.

“Even with four consecutive months of CPI increases, investors are anticipating that the central bank will cut rates in June and make an additional two cuts by year-end,” Torres says.

Financial historian Mark J. Higgins emphasizes the Fed’s focus on maintaining price stability amidst high inflation and low unemployment. He warns against premature policy easing, citing historical precedents.

“For all of these reasons, the lessons of financial history suggest that the FOMC will tilt toward a more hawkish position than most market participants hope,” Higgins concludes.

USD: Fed Meeting: Powell-led FOMC Expected to Hold Rates, Market Awaits Inflation Comments

The FOMC Meeting outcome is expected is 5.25%-5.50% no rate cuts in this meeting by economists. The main reason is higher wages, robust demand, inflation higher and unemployment rate lower, higher jobs rate. So US Dollar moves positive tone ahead of today meeting.

USDCHF is moving in Ascending channel and market has reached higher high area of the channel

USDCHF is moving in Ascending channel and market has reached higher high area of the channel

Today, March 20th, marks the awaited decision day for the US Federal Reserve regarding its interest rates. The culmination of the two-day Federal Open Market Committee (FOMC) meeting is expected to bring forth the Fed’s verdict on the benchmark interest rates. Market speculations and Wall Street estimates suggest that the US central bank is inclined to maintain the status quo, keeping the benchmark interest rates steady within the range of 5.25 per cent to 5.50 per cent. This would mark the fourth consecutive meeting where the rates remain unchanged.

During its first policy-setting meeting of the year, the FOMC underscored its commitment to monitor inflation trends closely. While the committee unanimously voted to retain the policy rate at the 23-year high, it indicated a cautious stance, stating that any reduction in the target range would only be considered with greater confidence in sustained movement towards the two per cent inflation target.

FED Powell will do tapering in the upcoming meeting as Job data proves a positive mood in the economy.

The context leading up to this decision is notable. The Fed had swiftly reacted to mounting inflationary pressures by raising the policy rate by 5.25 percentage points since March of 2022. However, since July, the Fed has maintained a holding pattern on the policy rate as inflation levels approach the targeted threshold. This deliberate pause underscores the Fed’s vigilance in ensuring the sustainability of inflation trends before contemplating any further adjustments to interest rates.

USD: US Fed Meeting LIVE: S&P 500 Flat, Awaits Rate Decision & Powell Speech

The FOMC Meeting outcome is expected is 5.25%-5.50% no rate cuts in this meeting by economists. The main reason is higher wages, robust demand, inflation higher and unemployment rate lower, higher jobs rate. So US Dollar moves positive tone ahead of today meeting.

USDJPY is moving in an Ascending triangle pattern and the market has reached the resistance area of the pattern

USDJPY is moving in an Ascending triangle pattern and the market has reached the resistance area of the pattern

US Fed Meeting LIVE: Jerome Powell Hints at Potential Rate Cuts

FED meeting scheduled this week

Federal Reserve Chair Jerome Powell hinted this month that the central bank is nearing the confidence required to begin reducing interest rates. “We are waiting to become more confident that inflation is moving sustainably at 2%,” Powell stated during his testimony before the Senate Banking Committee. “When we do gain that confidence — and we are not far from it — it will be appropriate to start dialling back the level of restraint.”


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