Fed Potential Steps This Wednesday, 14 June 2023.
- On Wednesday, 14th June 2023, the Federal Reserve (Fed) is anticipated to pause and refrain from raising interest rates.
- After its two-day meeting, the Fed will publish a statement with economic and rate projections.
- After that, Chairman Jerome Powell will hold a news conference where he is anticipated to adopt a cautious demeanor while remaining open to potential future rises.
Following a 10-meeting run of rate increases, the Federal Reserve is anticipated to take a break on Wednesday to allow the American economy to recover its breath.
Markets are pricing in a high likelihood that central bank officials would “skip” this month’s meeting as they assess the effects of 5 percentage points’ worth of rises dating back to March 2022 (the term they often prefer to “pause”).
That doesn’t guarantee the hikes will stop after this. It simply means that officials might decide that now is a great time to assess because the inflation rate is slowing down.
Bill English, a former Fed official and currently the Yale School of Management finance professor, stated that “they’ve kind of set things up for a pause.” They’ll likely pause, but I believe they’ll be keen to avoid a situation when investors exclaim, “Hurrah! The cycle of tightening has ended.
There will be a lot of repercussions of the Fed’s decision on Wednesday.
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