Summary:
Investors believe the FOMC will maintain interest rates this month. They anticipate a 100 bps cut in 2024, raising doubts about its likelihood.
The Fed's Dec meeting
14/12/2023 (Thu) 03:00
Previous (Aug): 5.50% | Forecast: 5.50%
Investors are convinced that the FOMC will once again opt not to raise interest rates at its upcoming meeting this month. They have priced in rate cuts of 100 bps for 2024, which is questionable.
Powell confronts a mixed economic picture. While the labour market is resilient and consumer spending is solid, there are signs of slower growth and, in turn, lower inflation.
He is expected to reiterate that it is still premature to discuss policy shift as inflation remains well above the Fed’s target of 2%. But investors’ view could prove hard to alter at this point.
Trump's policies led to US stock outflows, and the dollar's decline widened the asset gap. Emerging markets may attract capital inflows.
2025-04-30
Private sector added 155,000 jobs in March, with wages up 4.6%, easing concerns about a labor market and economic slowdown.
2025-04-30
Inflation did not slow down in February, with core PCE up 2.8% year-on-year. Goods prices rose 0.2%, led by entertainment goods and automobile prices.
2025-04-30
