What to expect from tonight's Fed meeting?
Along with the heated situation in the Middle East, the Fed meeting at 1 AM tomorrow is the focus of investor attention this week.
Although the interest rate decision is almost certain, with the Fed expected to hold rates steady, attention will be focused on:
- Will the FOMC maintain the forecast of two rate cuts (each by 0.25%) this year?
- The response of Fed Chairman Jerome Powell to the pressure for rate cuts from President Trump.
- Forecasts on employment, inflation, and GDP growth.
The meeting takes place against the backdrop of the uncertain impact of tariffs on inflation, along with increasing pressure from Mr. Trump demanding Powell to cut rates. The Israel-Iran conflict is also a new factor, posing potential risks to global energy market stability.
Many experts speculate that the FOMC will maintain a wait-and-see stance at this meeting, with September being the key time for making a decision on interest rates.