FOMC: To cut or not to cut ?
FOMC happens Wednesday.
Will the Fed cut?🤔
Will the Fed cut?🤔
🤩Key takeaways
The Federal Reserve is expected to leave borrowing costs at a 23-year high of 5.25-5.5 percent, pushing back on investors’ hopes that it’ll be quick to cut interest rates.
Inflation is not slowing as quickly as it once was, with consumer prices rising 3.2 percent in February and hitting a hotter 3.8 percent when excluding food and energy.
Consumers should focus on paying off debt and improving their credit score, as interest rates are expected to stay high for the foreseeable future.
The Federal Reserve is expected to leave borrowing costs at a 23-year high of 5.25-5.5 percent, pushing back on investors’ hopes that it’ll be quick to cut interest rates.
Inflation is not slowing as quickly as it once was, with consumer prices rising 3.2 percent in February and hitting a hotter 3.8 percent when excluding food and energy.
Consumers should focus on paying off debt and improving their credit score, as interest rates are expected to stay high for the foreseeable future.
Back in early January, everyone was buzzing about the Fed possibly cutting rates by March. Can you believe it? The odds were sky-high at 77%! But then, bam! The latest employment report drops, showing the U.S. economy knocked it out of the park with over 350,000 new jobs in January alone! That's almost double what everyone was expecting. And just like that, the odds of a rate cut plummeted to a measly 20%. 😭😭😭
The top 3 trends to watch as hotter inflation delays the Fed’s rate cuts
🤑1. Inflation isn’t slowing as fast as it was in 2023
Inflation slowed more dramatically than any official expected in 2023, sinking 3 full percentage points by the time the calendar year came to a close. Improving supply chains aided the decline, illustrated by falling gasoline, household utilities and used car prices.
🤑2. Fed officials will update consumers and investors on how many rate cuts they’re expecting
For now, it appears that only investors’ expectations have been recalibrated thanks to a string of strong economic data. Investors currently see just three rate cuts for the year after expecting as many as seven nearly two months ago.
🤑3. The Fed may start to rethink whether it can defeat inflation without slowing the economy
Powell & Co. kicked off their fastest tightening cycle in 40 years with the assumption that below-trend growth would be necessary to bring inflation back down. Yet, month after month, inflation slowed, while the job market and growth remained resilient.
What voting Fed officials are saying about rate cuts
The path to price stability is not a straight line. I need to see more progress to feel fully confident that inflation is on a sure path to averaging 2 percent over time.
— RAPHAEL BOSTIC, ATLANTA FED PRESIDENT
There is no imminent risk to the economy faltering. We are ready to make moves and adjust as the data demands us to do.
— MARY DALY, SAN FRANCISCO FED PRESIDENT
If the economy evolves as expected, I think we will gain that confidence later this year, and then we can begin moving rates down.
— LORETTA MESTER, CLEVELAND FED PRESIDENT
Who's anticipating FOMC Statement tomorrow? 👀
Will you be engaging in the markets or will you be sitting on your hands? 👀
Will you be engaging in the markets or will you be sitting on your hands? 👀
Feel free to share your thoughts and join the discussion below!📈📈📈
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SPACELIGHT : No. irrelevant question
.
73754291 : no They wont
efficentupupOP 73754291: Just wait and REACT.
efficentupupOP SPACELIGHT:
73575546 : No they won't