#FedWatch – Markets Await Fed’s Interest Rate Decision

The Federal Reserve concludes its policy meeting today, with markets eagerly anticipating its interest rate decision and economic outlook. Most analysts expect rates to remain unchanged, but Chair Jerome Powell’s statements on future cuts will be crucial.

Market Sentiment Before the Decision

Global markets are mixed. France’s CAC 40 gained slightly, while Germany’s DAX and Britain’s FTSE 100 declined. U.S. stock futures show small gains. Bitcoin rose 1.2% to $83,290 as investors bet on looser monetary policies.

Inflation and Economic Indicators

U.S. consumer inflation expectations surged to 3.9% from 3% in December, complicating the Fed’s goal of maintaining 2% inflation. Stronger job growth also raises uncertainty around rate cuts.

Analysts’ Concerns

Some analysts believe the Fed’s influence over the economy is weakening due to external trade policies, making future guidance harder to predict.

Rate Cut Speculation

Goldman Sachs now expects two rate cuts in 2025—one in June and another in December—down from its earlier forecast of three.

Conclusion

With inflation pressures and job growth influencing policy, today’s Fed announcement will shape market expectations for the year ahead.