Federal Reserve Likely to Keep Interest Rates Steady as Economic Outlook Unfolds

The Federal Reserve is expected to announce its interest rate decision along with the latest Summary of Economic Projections (SEP) at 2:00 AM (UTC+8) on Thursday. A press conference with Fed Chair Jerome Powell will follow at 2:30 AM.

According to a report by Odaily, the market broadly expects that the Federal Open Market Committee (FOMC)#FOMCMeeting will keep interest rates unchanged at 4.25% to 4.5%. A recent survey by Reuters showed that out of 105 economists, 103 believe the Fed will leave rates steady, while only 2 expect a small rate cut of 25 basis points.$ETH

Looking ahead, 59 of those economists predict that the Fed could start cutting rates in the next quarter, possibly as early as September. In addition, 60% of them expect the Fed to lower rates twice before the end of the year. This outlook is in line with the central bank’s March projections and matches what financial markets are currently pricing in — a total easing of around 46 basis points by year-end.$BTC