Federal Reserve Chair Jerome Powell and his colleagues are signaling a potential shift in monetary policy, with discussions indicating a move towards reducing interest rates potentially as early as May or June. This comes amid expectations set by financial markets and Fed Funds Futures, which anticipate about 3.5 rate cuts starting in June. The upcoming CPI report this week is deemed crucial for setting the timing for these cuts. Powell, in recent congressional testimony, mentioned the need for just a bit more evidence that inflation is moving towards the 2% target before making such decisions. Meanwhile, financial markets are preparing for the possibility that the Fed may maintain higher borrowing costs for longer than previously hoped, casting doubt on a May rate cut. Additionally, a Reuters poll suggests the Fed will start rate cuts in June, though there might be fewer cuts than expected within the year. Markets have priced in a 97% probability that the Fed will leave interest rates unchanged at a range of 5.25% to 5.5% after its next meeting on March 20, while the chance of at least a 25-basis-point rate cut by the subsequent meeting in May was seen at only 21.9%.
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Markets have priced in a 97% probability that the Fed will leave interest rates unchanged at a range of 5.25% to 5.5% after its next meeting on March 20, while the chance of at least a 25-basis-point rate cut by the subsequent meeting in May was seen at only 21.9%, down from…
Another #MustRead from @SteveMatthews12 pointing out that this February CPI report could be one that helps seal deal for Fed rate cut in June Fed Officials to Signal Interest Rate Cuts Are Getting Closer https://t.co/60WfRaTqiW
Fed to start rate cuts in June; risk fewer delivered this year: Reuters poll https://t.co/Mw0CdTJi5F https://t.co/6xhlRqQfcM
Fed projections to show if rate cut outlook stays intact through strong data. #FederalReserve #InterestRate #FOMC https://t.co/lVILMBqvtJ
🔴 POLL: THE FEDERAL RESERVE ARE TO CUT RATES BY 75 BPS OR LESS IN 2024, SAY 52 OF 108 ECONOMISTS; 26 SAY 100 BPS.
Fed projections to show if rate cut outlook stays intact through strong data https://t.co/ql7s5NqoYF https://t.co/NyHcXS5UzL
#Fed Officials to Signal Interest Rate Cuts Are Getting Closer In congressional testimony last week, #Powell emphasized central bank needs “just a bit more evidence” inflation is headed toward 2% target before lowering borrowing costs: “We’re not far” https://t.co/m1XsYNF66K https://t.co/DqSeCH0WXE
Fed Funds Futures are now looking for about 3.5 cuts this year to begin in June
Fed Projections To Show If Rate Cut Outlook Stays Intact Through Strong Data - MarketScreener https://t.co/WfLALf3qYN
⚠️ FED PROJECTIONS TO SHOW IF RATE CUT OUTLOOK STAYS INTACT THROUGH STRONG DATA Full Story → https://t.co/NWw5UCVhw4 No one expects the Federal Reserve to change interest rates at next week's policy meeting, but whether officials hold to their previous rate-cutting outlook is… https://t.co/lWNhqCgqSj
❖ UBS GLOBAL RESEARCH EXPECTS BANK OF ENGLAND TO START CUTTING RATES IN AUGUST VERSUS MAY EXPECTED EARLIER
Financial markets are bracing for the possibility that the Fed may keep borrowing costs higher for longer than hoped, putting a May rate cut in doubt. https://t.co/dBiaomWZI2
Powell made it clear to lawmakers this week still expects cuts "at some point this year" even after some hot readings on inflation while also cautioning that the Fed would take its time. https://t.co/8JSRCotbWn https://t.co/MP0Eh4nm71
"How soon will the Fed cut interest rates? Inflation report this week could help set timing." (via @USATODAYmoney) https://t.co/MuZE4CYoIE
Fed Officials to Signal Interest Rate Cuts Are Getting Closer Powell says Fed is ‘not far’ from the evidence needed to cut Investors likely to focus on the new rate forecasts in March https://t.co/vTW6x6hXtm
What about if the Fed signal no cuts this year … March meeting likely too soon but the next pivot is surely coming https://t.co/IZyX5b8dNG
Fed Chair Jerome Powell and his colleagues are moving closer to dialing back interest rates. There won't be a cut in March, but maybe May or June? CPI this week will be an important clue. https://t.co/EJnsp4t2s3 via @economics
Fed Chair Jerome Powell and his colleagues are moving closer to dialing back interest rates. Here's what to know ahead of the central bank's March meeting https://t.co/6wVPdJQp87