#FOMCMeeting
The Fed’s rate-setting Federal Open Market Committee will meet Tuesday and Wednesday to discuss monetary policy, with a decision due out at 2 p.m. EDT Wednesday.
A press conference with Fed Chairman Jerome Powell will follow at 2:30 p.m.
Traders overwhelmingly expect the Fed to keep rates at the 4.25% to 4.5% range they’ve sat since December.
Contracts linked to Fed policy bets price in 97% odds of a hold, compared to a 3% chance of a 25 basis-point cut, according to CME Group’s FedWatch Tool.
Economists at the three largest investment banks – J.P. Morgan, Goldman Sachs and Bank of America – all predict the Fed will keep rates firm this week.
Crucial Quote
“The May FOMC meeting looks like a placeholder,” Bank of America economists led by Aditya Bhave remarked in a recent note to clients.
Fed Meeting This Week Follows Trump’s Threats To Fire Powell
This week’s meeting may not bring much in terms of fireworks, but President Donald Trump identified Powell as one of his top targets in the early days of the president’s second term as the Fed declined to cut rates. Over the last month, Trump has called Powell “Mr. Too Late,” a “total stiff” and a “major loser” amid his demands to lower rates. Trump reportedly discussed firing Powell, a move which comes with shaky legal footing, but has since backed off. Powell was appointed to his post as the U.S.’ top monetary policy official by Trump in 2017.
