Reuters poll: Fed likely to resume cutting rates in September
|59 of 105 economists polled by Reuters said that they expect the Federal Reserve (Fed) to resume cutting interest rates in the next quarter, likely in September.
FOMC Interest rate decision (Fed) | News & Analysis
Fed maintains status quo in May, sees increased uncertainty
LATEST FED MEASURES TO BATTLE INFLATION
NY Fed: Year-ahead expected inflation falls to 3.2% in May from 3.6% in April
|The Federal Reserve (Fed) Bank of New York noted in its latest Survey of Consumer Expectations that the year-ahead inflation expectation stood at 3.2% in May, down from 3.6% in April.
Fed's Harker: Still possible the Fed can cut rates later this year
|Fed Bank of Philadelphia President Patrick Harker is embarking on a farewell tour. The Philly Fed head is set to retire at the end of June, and is taking the opportunity to deliver some hope to investors that the Fed may still yet find itself in a position to deliver rate cuts before the year is over.
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April decision review
Breaking: Fed leaves policy rate unchanged at 4.25%-4.5% as expected
|The United States (US) Federal Reserve (Fed) announced on Wednesday that it left the policy rate, federal funds rate, unchanged at the range of 4.25%-4.5% following the May meeting. This decision came in line with the market expectation.
March decision review
Breaking: Fed leaves interest rate unchanged at 4.25%-4.5% as expected
|The US Fed announced on Wednesday that it left the policy rate, federal funds rate, unchanged at the range of 4.25%-4.5% following the March meeting. This decision came in line with the market expectation.
January decision review
Breaking: Federal Reserve left its interest rates unchanged, as anticipated
|The Federal Reserve (Fed) announced on Wednesday that it has kept its Federal Funds Target Range (FFTR) unchanged at 4.25%–4.50%, in line with broad market expectations. This decision follows the 25 basis point rate cut in December as the Fed continues to navigate the delicate balance between supporting economic growth and managing inflation.
December decision review
Breaking: Fed cuts interest rate by 25 bps to 4.25%-4.5% in December as expected
The US Federal Reserve (Fed) announced on Wednesday that it lowered the policy rate, federal funds rate, by 25 basis points to the range of 4.25%-4.5% following the December meeting.
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EUR/USD holds steady near 1.1550 after US data
EUR/USD remains range-bound at around 1.1550 in the American session on Tuesday. The cautious market stance supports the US Dollar despite the disappointing Retail Sales data, making it difficult for the pair to gain traction.
GBP/USD retreats below 1.3550 on modest USD strength
GBP/USD remains on the back foot and trades slightly below 1.3550 in the second half of the day on Tuesday. The risk-averse market atmosphere amid Middle East tensions helps the USD stay resilient against its peers, causing the pair to stretch lower.
Chinese data suggests economy on track to hit 2025 growth target
China's May data was mixed with strong retail sales, but soft readings on fixed-asset investment and property price. Overall, though, data suggests that China remains on track to achieve its growth target in the first half of 2025.
Gold fluctuates below $3,400 as traders turn reluctant ahead of Fed
Gold continues to fluctuate in a relatively tight range below $3,400 in the American session on Friday. Traders remain reluctant to take large positions ahead of the Federal Reserve's policy decisions, while keeping a close eye on headlines surrounding the Iran-Israel conflict.
Bitcoin falls slightly as Trump calls security advisors to deal with Iran-Israel war
Bitcoin price declines slightly to around $106,000 on Tuesday following a mild recovery the previous day. Donald Trump leaves the G7 summit early to return to Washington and meet with his national security team.
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Big Picture
What's important about the Federal Reserve’s monetary policy meeting?
With a pre-set regularity, a nation's central bank holds a monetary policy meeting where board members take different measures, the most relevant one setting the range of the federal funds rate, which greatly influences the interest rate charge on loans and advances to commercial banks.
In the US, the Federal Open Market Committee (FOMC) of the Federal Reserve (Fed) meets at intervals of five to eight weeks to announce their latest decisions. An interest-rate hike increases borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors. A rate cut, on the other hand, tends to weaken the USD.
If rates remain unchanged, the attention, main news and analysis turn to the tone of the monetary policy statement and the press conference from the Fed’s Chair. Markets analyze whether the tone is hawkish or dovish over future developments of inflation.
What is the Fed?
The Federal Reserve (Fed) is the central bank of the United States (US) and it has two main targets: to maintain the unemployment rate at its lowest possible levels and to keep inflation around 2%. The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors and the partially appointed Federal Open Market Committee (FOMC). The FOMC organizes eight scheduled meetings in a year to review economic and financial conditions. It also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. The FOMC Minutes, which are released by the Board of Governors of the Federal Reserve weeks after the latest meeting, are a guide to the future US interest-rate policy.
Fed official website, on X and Facebook
How to trade the event?
- Do not rely on the Fed to determine the direction of the dollar in the coming months.
- The dollar tends to follow its predominant trend when the Fed starts to hike rates.
- There is no direct link between the Fed hiking rates and the usd falling. When a weak usd has coincided with a Fed hiking cycle, it has been falling for some time.
- Due to this, we may see a muted reaction to a potential Fed rate hike.
WHO IS FOMC'S CHAIRMAN?
Jerome Powell
Jerome Powell took office as chairman of the Board of Governors of the Federal Reserve System in
February 2018, for a four-year term ending in February 2022. His term as a member of the Board of Governors will
expire January 31,
2028. Born in Washington D.C., he received a bachelor’s degree in politics from Princeton University in 1975 and
earned a law degree from Georgetown University in 1979. Powell served as an assistant secretary and as
undersecretary of the Treasury
under President George H.W. Bush. He also worked as a lawyer and investment banker in New York City. From 1997
through 2005, Powell was a partner at The Carlyle Group.
Jerome Powell Fed's Profile and Wikipedia
The World Interest Rates Table
The World Interest Rates Table reflects the current interest rates of the main countries around the world, set by their respective Central Banks. Rates typically reflect the health of individual economies, as in a perfect scenario, Central Banks tend to rise rates when the economy is growing and therefore instigate inflation.