What you need to know before the Fed's interest rate decision
The US Federal Reserve (Fed) will announce its new interest rate decision this evening. While markets are confident the Fed will leave interest rates unchanged, Powell's remarks at the press conference will be closely watched. The Fed chair's comments on Trump's pressure for a rate cut, the September meeting, and the general state of the economy are also a matter of interest.
The Fed, which has held interest rates steady since January and has not cut them, is expected to maintain this stance tonight. Markets hold this expectation by 98%.
Inflation, which had been trending downward since last year, rose back to 3% in September 2024 with a 50 basis point interest rate cut. The US CPI, which subsequently fell again, began to rise amid the "tariff wars" and was announced at 2.7% in June.
#Fed Chair Powell has also regularly stated that they are reluctant to cut interest rates due to the pressure and uncertainty created by tariffs on inflation.
US media, meanwhile, report a lack of unity within the Fed regarding interest rate cuts. According to #CNBC , Christopher Waller and Michelle Bowman argue that interest rates should be cut immediately, while some Fed members believe there should be no rate cuts throughout 2025.
The dot plot charts released in June also showed the average number of rate cuts for 2025 as "2." There will be no dot plots at today's Fed meeting.
A few weeks ago, Christopher Waller, a member of the Fed who is considered one of Powell's successors, stated that July would be a suitable time for a rate cut.
At this evening's press conference, scheduled for 9:30 PM #Turkish time, some of the questions journalists will ask will be about the budget allocated for the Fed building's renovation. It was speculated that this issue, which has been preoccupying the American public for some time, could even force Powell out of office.
⚠️ Note: My posts are not investment advice. There may be errors due to translation. Please do your own review.
