What to expect from the US Federal Reserve Board meeting
The rise in interest rates has already led to more significant increases in interest rates on loans in the US, from mortgage loans to those for buying a car or developing a business
The Federal Reserve Board of the United States today begins a two-day meeting on monetary policy, which is the focus of the markets, writes Reuters.
At the end of the meeting, the UFR may reach another increase in its main interest rate, increasing it substantially for the fourth time, by 0.75 percentage points. Federal Reserve Board officials, however, are likely to hold a tense debate over whether the time is coming when they may have to slow the pace of interest rate hikes to tame high inflation but risk the country’s economy collapsing. in recession, noted the Associated Press.
Financial market participants are weighing the chances that the Federal Reserve will signal the start of a less aggressive monetary policy at this meeting and announce that it expects the key interest rate not to be raised as intensively. Against this backdrop, the US dollar has depreciated against other major currencies today.
Markets generally expect the Fed to raise its key interest rate by 0.75 percentage points at the end of its two-day meeting. As for the December meeting, market expectations are split between a 0.75 or 0.50 percentage point increase, Reuters noted.
Federal Reserve Chairman Jerome Powell would not specifically indicate the Fed’s likely next moves during a press conference at the end of today’s meeting, but economists believe he may confirm that lowering the rate of interest rate hikes and it up 0.5 percentage points in December.
The rise in interest rates has already led to a more significant increase in interest rates on loans in the US, from mortgage loans to those for the purchase of a car or for the development of a business, notes the AP.
