US Fed meet this week: Cooling inflation, resilient jobs market - will Fed hold rates steady?
US President Joe Biden calls labor market numbers ‘a sweet spot,’ expects Fed to call off interest rate hikes In its last policy meeting on November 1, Jerome Powell-led Federal Open Market Committee (FOMC) decided to keep the key overnight interest rates unchanged at 5.25-5.50 per cent. The central bank had kept interest rates steady at a 22-year high for the second time in a row, as inflation still remains above the Fed's 2 per cent target level.
"The Fed has signalled the end of the rate hiking cycle and will pause in the coming policy meet. A rate cut by the Fed is likely by mid-2024 and that is when the MPC also can go for a cut, assuming no major changes in the macro scenario," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Also Read: After RBI MPC verdict, US Fed to unveil policy decision next week: Here's what experts predict (Exciting news! Mint is now on WhatsApp Channels. Subscribe today and stay updated with the latest financial insights! Click here!) Trivesh D, COO, Tradejini underscored that the US Federal Reserve (Fed) is poised to uphold its steadfast hawkish stance.
"The Fed's resolute commitment to maintaining record-high interest rates, a strategy to combat inflation, is expected to persist, with no imminent plans for a reduction. This decision, while unlikely to trigger significant repercussions in the Indian stock market, underscores the fact that market participants have already factored in the effects of these unprecedented interest rates and the recent election dynamics," said Trivesh.
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