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24 Apr 2024

International Economy

Fed is expected to keep its policy rate steady at the FOMC meeting slated for April 30 - May 1, 2024…Fed may make fewer interest rate cuts than those signaled earlier during 2024 (Business Brief No.4055)

คะแนนเฉลี่ย
  • The US Federal Reserve (Fed) is likely to hold its policy interest rate at 5.25-5.50 percent during the upcoming FOMC meeting amid a slower decline in inflation rates while the labor market remains robust. Headline inflation rate in the US began to accelerate once again in March 2024.
  • KResearch views that the Fed is expected to keep interest rates high for longer in line with the latest inflation rate and data within the labor market that remain strong. Additionally, Jerome Powell's statement indicated that more time might be needed for the Fed to be confident that inflation is heading towards the 2 percent target. Meanwhile, inflation risk is expected to increase due to the ongoing conflict in the Middle East.
  • Markets view that the Fed is likely to delay its policy interest rate cuts. It may begin a policy interest cut in September 2024 instead of the originally anticipated June 2024. The Fed may only lower policy interest rates twice this year, less than the three times initially signaled via the Fed’s “dot plot” at its March 2024 meeting.

International Economy

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