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US :: The US Federal Reserve is set to announce its key policy decision later today, and there is significant anticipation regarding the central bank’s timing on the trajectory of interest rate cuts for the remainder of the year.

Market participants are also eagerly awaiting guidance on how the Fed plans to navigate the current economic landscape, especially in light of recent economic data with inflation sticking above 2% annual target.

Fed officials will keep a close watch on May US CPI data due before the policy announcement to gauge whether the inflation is turning down toward the central bank’s target.

In today’s outcome, there is near consensus that the Jerome Powell-led FOMC will keep the rates unchanged at a target range of 5.25%-5.5%. The policymakers have held interest rates at 5.3% since July last year, after raising them sharply from near zero starting in March 2022.

“We expect the Federal Reserve to keep its key interest rate unchanged at 5.25% to 5.5% at the end of the two-day policy meeting on Wednesday, with any change in monetary policy outcome still being driven by incoming economic data,” said Manish Chowdhury, Head of Research at StoxBox.

Read more at:
https://economictimes.indiatimes.com/markets/stocks/news/fed-outcome-expectations-markets-hawk-eyed-for-any-clues-on-rate-easing-this-year/articleshow/110935919.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst