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The US Federal Reserve is expected to hold interest rates steady at the conclusion of its next meeting on January 31.
Article originally published by Forbes. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.
Published by
09 Jan 2024
The U.S. Federal Reserve is expected to hold interest rates steady at the conclusion of its next meeting on January 31. That’s the view of fixed income markets, which currently give just a 5% chance of a January interest rate cut, according to the CME FedWatch Tool.
The Fed sees rates holding at peak levels, too. The minutes from December’s Federal Open Market Committee meeting, which were released in January, stated. “In discussing the policy outlook, participants viewed the policy rate as likely at or near its peak for this tightening cycle, though they noted that the actual policy path will depend on how the economy evolves.”
However, the markets are currently somewhat ahead of Fed leaders in projecting interest rate cuts. The latest Summary of Economic Projections from December 2023 stated the median Fed forecast expects short-terms rates to be just above 4.5% by December 2024. Meanwhile, fixed income futures markets expect a
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