
Fed to announce policy rates today. Here’s what to expect from FOMC meeting
US Federal Reserve’s rate setting committee is expected to retain the federal fund rate steady at 4.25%-4.5% following its two-day meeting which ends today (Wednesday, March 19).
It is the Federal Open Market Committee’s (FOMC’s) second policy meeting this year and since Donald Trump took over the reins as the President of the United States of America (USA) in January.
The Fed will also release its quarterly Summary of Economic Projections (SEP) which will offer insights into members’ expectations for the country’s GDP growth, unemployment, and inflation.
The summary will be an account of how U.S. central bankers are viewing the likely impact of Trump’s policies in the din of slowdown fears.
Top voices in the US have cut their growth expectations for this year while raising the perceived risk of recession. They are anticipating inflation going ahead as a result of tariff wars.
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«Still… we are starting to see several shocks. Trade wars… Consumer expectations signaling recession fears and inflation fears,» a Reuters report said, quoting Beth Ann Bovino, chief economist for U.S. Bank.
In her view, the Fed policy also remains uncertain if the Trump administration's tariff plans rekindle the price pressures the central bank is trying to tame, the report said.
Indian markets, which have made a smart recovery over the last two trading sessions will be eyeing the development. Sectorally, IT will be in focus ahead of the announcements, later today.
Capitalmind Research's Krishna Appala does not see Chair