1 May 2023 International Economy FOMC meeting, May 2-3, 2023: Fed Funds rate likely raised to 5.25% (Business Brief No.4001 Full Ed.) คะแนนเฉลี่ย คะแนนเฉลี่ย 5 stars 4 stars 3 stars 2 stars 1 star It is expected that the US Federal Reserve (Fed) will raise it policy rate by another 0.25 percent to 5.00-5.25 percent at the Federal Open Market Committee (FOMC) meeting scheduled for May 2-3, 2023. This may be its final rate hike of the current upward interest rate cycle amid credit tightening as a result of problems in the banking sector and recent policy rate increases, which are expected to cause the US economy to slow down and tip into a recession at any point in subsequent quarters. Although inflation in the US has gradually declined, it remains at an elevated level. The robust labor market will continue to support the Fed to raise its policy rate at the FOMC meeting, May 2-3, 2023 even as the US economy has exhibited signs of a slowdown after the 1Q23 GDP grew 1.1 percent, annualized QoQ, which was lower the 2.0 percent growth, annualized QoQ, expected by markets. Meanwhile, KResearch is of the view that the anticipated policy rate hike at the upcoming FOMC meeting may be the last of the current upward interest rate cycle, bringing the Fed funds rate to its peak of 5.00-5.25 percent in line with the Fed dot plot released at the previous meeting. Although inflation in the US has significantly declined, it remains relatively high. This coupled with the softening US economy due to the impacts of the Fed’s aggressive rate hikes in recent years, and credit tightening has led us to expect that the Fed will give more weight to the economic risk and end the rate increase after the upcoming FOMC meeting. The US central bank may maintain its view that the policy rate in the range of 5.00-5.25 percent should be adequate to bring inflation to its target of 2.0 percent and avoid a hard landing, while not causing any significantly adverse impact on the economy. Nevertheless, the Fed’s future monetary policy will likely hinge on inflation and economic figures. As the US economy is set to soften, it is likely that the Fed will cut its policy rates during 2023. View full article Login / Register Or Enter the code from the poll Annotation This research paper is published for general public. It is made up of various sources. Trustworthy, but the company can not authenticate. reliability The information may be changed at any time without prior notice. Data users need to be careful about the use of information. The Company will not be liable to any user or person for any damages arising from such use. The information in this report does not constitute an offer. Or advice on business decisions Anyhow. International Economy Fed Related Analysis View all 14 Mar 2018 International Economy Thailand must brace for trade disputes between the US, EU and China, etc. (Current Issue No. 2905) The US is pressing ahead with trade measures against trade partners globally. In addition to their new ‘safeguard tariffs’ on imported solar panels and large washing machines imposed early in 2018, and more recently on imported steel and aluminum, the US is now preparing to implement protectionist measures against Chinese products valued at around USD60 billion. This direction will likely add significant pressure to global trade, thus, KResearch views that all eyes should be closely kept on negotiations between the US and EU, both being among the largest economies in the world. Details on those negotiations are expected to be released before the relevant ‘safeguard tariffs’ on steel and aluminum become effective at the end of next week. If the EU and China are exempted from these new tariffs, prevailing anxiety will ease. But to the contrary, without such exemptions, China and the EU may opt to implement their own trade protectionist measures against the US, as well. This situation would likely escalate into further actions and reactions, incurring significant damage to trade that could spill over to other regions of the world.... Read more 0 KB 0 KB 2 Mar 2018 International Economy Planned New US Tariffs on Metal Imports Triggering More Intense Trade Protectionism (Current Issue No. 2903) Throughout 2018, the US administration’s continual pursuit of protectionist trade measures has tended to increase volatility in global trade. Most recently, President Donald Trump announced that new “safeguard” tariffs would be imposed on steel and aluminum imports at 25 percent and 10 percent, respectively. Although no details have been released yet, it seems undeniable that trade with the US will become difficult, going forward.... Read more 0 KB 0 KB 6 Mar 2018 International Economy China’s 2018 Economic Targets Reflect Slower Economic Growth, while Monetary and Fiscal Policies are Still Being Used to Sustain Economic Growth Ahead (Business Brief No.3730) All eyes were on the National People’s Congress, March 5, 2018, because the ruling Communist Party proposed constitutional a... Read more 0 KB 0 KB 26 Jan 2018 International Economy Fed Meeting Expected to Maintain Rate Leaving Room for Increasing Rate Later (Business Brief No.3725) KResearch expects the US Federal Reserve (Fed) to maintain their policy rate at 1.25-1.50 percent during their first round of meeting o... Read more 0 KB 0 KB 26 Dec 2017 International Economy The Philippines: Rising Market of ASEAN (Current Issue No. 2887 Full Ed.) Thai exports to ASEAN-5 (Malaysia, Singapore, Indonesia, the Philippines and Brunei) account for 59.3 percent of our total exports to the entire AS... Read more 0 KB 0 KB 19 Dec 2017 International Economy Chinese Economy Continues Momentum to Yearend Growth next year inches toward balance, Focus on Reforms (Business Brief No.3719) China's latest economic indicators show that the Chinese economy has maintained momentum. Although China’s domestic eco... Read more 0 KB 0 KB View all