Market attention is focused on the upcoming Federal Reserve minutes as they could clarify the logic behind the recent rate cut and its impact on the US economy and future monetary policy decisions. A key piece of information for investors.
This Wednesday investors are waiting for the minutes of the last meeting of the US Federal Reserve. The minutes of the Fed’s September 2024 meeting, which will be published this Wednesday afternoon, should reveal the reason behind the surprise 50 basis point (bp) interest rate cut by policymakers. policies.
The minutes of the Fed’s September policy meeting are scheduled for 18:00 GMT, that is, 3:00 p.m. in Argentina, while data from the Consumer Price Index (CPI) and the Producer Price Index (IPP) of the US will be published on Thursday and Friday, respectively.
The meetings of the Federal Open Market Committee (FOMC) are key events for the financial world, where key decisions about US monetary policy are made. The FOMC is the decision-making body of the Federal Reserve (the central bank of the United States), and its primary goal is to promote maximum employment, stable prices, and moderate long-term interest rates in the economy.
Each of the 12 regional Federal Reserve Banks will present their observations on economic conditions in their respective districts, providing a broader view of the US economy following dovish comments from Fed Chair Jerome Powell , on future monetary policy actions and last week’s solid gains in nonfarm payrolls (NFP), traders will be watching to see if either of these two officials can provide more details on their economy and, in turn, on the size of the next rate cut at the FOMC meetings in November and December.
Because where until recently a reduction of 50 basis points was expected, now a reduction of 25 basis points has become more likely, and even the probability of no reduction at all has increased. As a result, the markets are currently somewhat muted. These meetings have become critical as members are divided over upcoming interest rate decisions.
FOMC Minutes
The minutes of the Federal Reserve’s September meeting should clarify the rationale behind the organization’s decision to cut interest rates by 0.5 percentage points last month. Economists and investors will also be watching closely to see if officials expressed any concerns about the US economy and labor market, which appear to be showing mixed results.
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Federal Reserve
The September jobs report was substantially better than anticipated from the previous Fed meeting. The unemployment rate fell, job growth soared and hiring numbers for the previous two months rose. As a result, the authorities’ descriptions of the labor market and the U.S. economy in the minutes might seem a little outdated, however.
Source: Ambito
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