#FOMCMeeting Tomorrow is a key day for the markets! With the upcoming decision on interest rates from the Federal Reserve around the corner and recent comments from former President Trump urging a cut, it is natural for expectations to be at a peak.
Considering the current context, especially the mention of declining inflation and political pressure, it is very likely that we will see another pause in interest rates. The Federal Reserve tends to act cautiously, seeking a balance between controlling inflation and supporting economic growth. While the decrease in inflation could open the door to future cuts, the Fed often prefers to wait to see consistent and robust data before making significant moves.
A cut at this time would be a strong signal that the Fed sees risks of economic slowdown and wants to stimulate it. An increase would be highly unlikely given the context of declining inflation. Therefore, the pause would allow the Fed to further assess the trajectory of the economy and inflation, maintaining the flexibility to act in the coming months if conditions warrant it. It will be interesting to see how the market reacts to this decision.