The FOMC is the arm responsible for decision-making at the U.S. central bank. It aims to achieve maximum employment and price stability (the dual mandate). Their main policy is to adjust short-term interest rates (federal funds rate) in response to changes in economic outlook.
What do we expect from this meeting?
Market expectations suggest that the Federal Reserve will keep interest rates unchanged at the current range (4.25%-4.50%). However, the focus will be on:
* Official monetary policy statement: Any changes in wording may indicate future trends.
* Summary of economic projections (SEP): which includes forecasts for inflation, economic growth, and unemployment rates.
* Jerome Powell's press conference (Chair of the Federal Reserve): He will provide further clarifications on the bank's outlook for the economy and the path of monetary policy.
Why is this meeting important?
FOMC decisions directly affect:
* Interest rates: and thus on the cost of borrowing for businesses and individuals (mortgages, auto loans, credit cards).
* Stock and bond markets: Expectations of a change in interest rates can lead to significant volatility.
* Currency prices: The U.S. dollar is directly affected by interest rate expectations.
* Inflation and economic growth: Monetary policy decisions aim to influence these key variables.
Stay tuned for the decision announcement today, Wednesday, June 18, at 2:00 PM Eastern Time (EST), followed by Jerome Powell's press conference at 2:30 PM (EST).
Share your predictions with us! Do you expect any surprises from the #FOMCMeeting?
#Federal_Reserve #Interest_Rates #Economy #Financial_Markets #America #Inflation