Whether it is the CPI report or the Fed's policy decision, they often stir up market turmoil on the day of release, but these two events rarely happen on the same day. According to Dow Jones Market Data, since 2008, there have been only 13 times in the 16 years since the CPI report and the Fed's policy decision were released on the same day. And tonight, people will face these two "eyes of the storm": because this time, both will be released on the same day, which is extremely rare!
According to the schedule, the U.S. Department of Labor is scheduled to release the May CPI data at 20:30 Beijing time tonight;
The Federal Reserve will announce its June interest rate decision at 2 a.m. Beijing time on Thursday, and Chairman Powell will hold a press conference half an hour later (2:30) as usual.
For the global market, in the past six hours or so, whether it is the stock market, bond market, foreign exchange market or commodity market, it is very likely to face several waves of fierce market movements...
Currently, it is widely expected that the Federal Reserve will maintain the target range of the federal funds rate at 5.25%-5.5% after the two-day interest rate meeting ends at 2 am Beijing time on Thursday, but economists will pay close attention to clues about the timing of the central bank's first rate cut in four years.
The Fed has kept its benchmark interest rate at this more than 20-year high since July last year. Powell has insisted in recent months that this interest rate level can push inflation down enough to slow demand, but it still needs to maintain a relatively tight policy for a longer period of time to ensure that inflation cools down.
This means that the U.S. Federal Reserve Open Market Committee (FOMC) may make its first rate cut at one of the last three interest rate meetings of this year in September, November or December, or there is a small probability that it may have to wait until 2025. All market participants will look for answers in the Fed's policy statement, the latest quarterly economic forecasts, the interest rate dot plot and Powell's press conference...$BNB