Fed: Placeholder assumptions – Rabobank
|The Fed is likely to keep the target range for the federal funds rate unchanged at 4.25-4.50% this week, Rabobank’s Senior US Strategist Philip Marey notes.
Fed to keep the target range for the federal funds rate unchanged
“We expect Powell to stress that the FOMC is data-dependent and cautious about further cuts, while dodging questions about the impact of Trump’s policies on the Fed’s rate path.”
“The FOMC and the Fed staff are struggling to incorporate the policies of the new administration in their forecasts, but once Trump’s policies have been fully incorporated in the projections, we expect the rationale for a second rate cut this year to fade.”
“While the Fed and the markets still expect two rate cuts this year, we think that the likely inflationary impact of tariffs and increased border security will cause a pause in the cutting cycle after one final hike in the coming months.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.