Nick Timiraos’ article was published Tuesday morning in the Wall Street Journal, so it’s not new news. And that won’t surprise anyone either.
In short:
- Fed officials will keep their benchmark federal funds rate steady
- Stronger-than-expected inflation in the first three months of the year likely delayed rate cuts for the foreseeable future.
- officials likely to stress they’re willing to keep rates steady…longer than expected
With no new economic projections at this meeting and no expected minimal changes in the Fed’s policy statement, Fed Chairman Jerome Powell’s press conference will be the main event.
During the press conference:
Powell is likely to repeat a message he delivered two weeks ago, when he said recent data “clearly has not given us any greater confidence” that inflation will continue to fall at 2%” and instead indicate that it will probably take longer than expected to achieve this. .”
The focus at this meeting will be on how Powell characterizes the interest rate outlook.
The Journal is closed but here is the link if you can access it:
- a hawkish turn, suggesting that a rate hike is more likely than a rate cut, seems unlikely for now
The Federal Open Market Committee’s (FOMC) policy decision will be released on Wednesday, May 1 at 2:00 p.m. EDT (6:00 p.m. GMT) and Fed Chairman Jerome Powell will follow up with his press conference at 2:30 p.m. (6:30 p.m. GMT) .
Previous previews:
- Citi says traders expect biggest S&P 500 move on Fed Day since 2023
- Fed cuts rates in 2024? BlackRock CIO plans more monetary easing
- BoA on FOMC meeting – more clarity on inflation is needed, in “will and see” mode
- FOMC meeting this week: “the most interesting news about this meeting will come on May 22”
- “The Fed has simply hit a brick wall”
- expect a hawkish Fed and Powell
- Fed cuts not imminent
This article was written by Eamonn Sheridan at www.forexlive.com.
cnbctv18-forexlive
