The three days until Federal Reserve officials sit down to decide what to do next with the interest rates decisions features a critical row of events that could shape their move, from employment figures on Thursday morning to the major event of the U.S. presidential election.
Most of the federal reserve is policy makers have expressed more resilience with additional rate cuts, the federal reserve is widely expected to deliver a 25-basis point interest rate cut.
Worth to mention that the current federal reserve interest rate is 5% and the federal reserve is favorite inflation gauge personal consumption expenditures (PCE) is 2.1% which is going downwardly as expected to match the expectation of the federal reserve is expansionary monetary policy leading the economy state into soft landing.
The federal reserve meeting is more than a rate cut or hold decision because the investors and policymakers worldwide will be observing the fed is statement and comments by chair Jerome Powell will provide more insight into whether officials believe economic resilience will continue – and if they might cut rates more slowly with time as a result.
Note to mention that Morgan Stanley stated that they do not expect Jerome Powell to commit to the size of future cut but to reiterate the fed remains date dependent.
