Summary:
In December 2023, FOMC maintained rates, hinting at multiple 2024 cuts. Markets expect steady rates in the upcoming week's meeting.
The Fed's Jan meeting
1/2/2023 (Thu) 03:00
Previous (Dec): 5.50% Forecast: 5.50%
The FOMC kept rates steady during its last meeting in Dec 2023 and signalled several rate cuts throughout 2024. Markets still see rates unchanged at the meeting due later in the week.
But several Fed representatives made it clear lately that they had not yet seen evidence to start easing monetary policy. Investors will closely watch Jerome Powell's conference about when the Fed may begin cutting rates.
Markets have priced in a 47% chance the Fed cuts rates in March, per the CME FedWatch Tool. Looking out to May, investors believe there is an 88% chance that rates will be lowered.
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