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👀 Following the unexpected reduction in interest rates in September, potential surprising decisions in the May FOMC meeting
In September, the Federal Open Market Committee (FOMC) shocked the markets when it unexpectedly cut interest rates by 0.5 percent, a move that was completely different from expert predictions. This unusual decision indicated that the Federal Reserve is deeply concerned about economic hardships and inflationary pressures. Now that the May FOMC meeting is set to take place tonight, speculation in the market is rampant: could the Fed take another surprising step?
So far, economic indicators present a mixed picture. Inflation remains persistent in some sectors, while employment data appears strong. Many experts expect the Fed to maintain interest rates for the time being to allow the effects of previous decisions to manifest. However, looking at September's example, the markets are still restless about a possible dovish policy decision.
Traders will listen closely to the remarks made by Fed Chairman Jerome Powell during the press conference following the meeting to gather hints about future policy. Whether or not there is any change in interest rates, his tone and guidance could influence investor expectations and the direction of the market.