The Fed’s Interest Rates Are Projected To Fall. Ahead of the Federal Open Market Committee (FOMC) meeting, investors are giving almost the same chance that the United States (US) central bank or The Fed will start lowering interest rates in March 2024.
That makes Fed Chair Jerome Powell’s conference call especially important, with everything hanging on how they read the latest economic data. In their report, they said that the Fed would be cautious about accelerating inflationary pressures again due to above-trend growth and labor market resilience.
Based on data published on Friday (26/1), US inflation figures continue to experience a surprising decline. The Fed’s preferred indicator slowed to 2.9% in December 2023, falling below 3% for the first time since early 2021.
The Fed’s Interest Rates Are Projected To Fall. On the other hand, consumer spending is still showing strength, with encouragement from falling inflation. But this strength may still make some people worry that price pressures will increase again.
Based on Business records, analysts predict that there will be a deeper debate this week. Economists at Citi, Bank of America and a number of other firms said the Fed next week could provide additional flexibility and remove references to additional policy strengthening. Then a decrease in interest rates will have a different rhythm from an aggressive increase in interest rates.