- Today, the eyes of the global financial markets are directed towards the US Federal Reserve meeting to know its decision regarding interest rates and US inflation data.
- US stocks were mixed as the Federal Reserve began its monetary policy meeting, which ends today, amid investor concerns that the central bank may not cut interest rates this year.
- Wednesday is expected to be one of the most important days of the year in terms of economic events, as investors across the board will hear about the path of inflation and how the Federal Reserve plans to react to new indicators to begin moving toward interest rates, according to CNBC.
- The day begins with the pivotal CPI reading for May and ends with the Fed policy statement in the afternoon, which will send vital signals about where the economy is headed and whether policymakers can act soon.
- The Fed meeting will conclude today with an interest rate decision and a subsequent press conference featuring Fed Chairman Jerome Powell.
- Although some indicators show signs of an economic slowdown, investors are increasingly concerned that this will not be enough to prompt the US central bank to cut interest rates in 2024.
- While the BLS releases its CPI report, members of the interest-rate-setting Federal Open Market Committee will finalize their forecasts for inflation, GDP and unemployment, as well as indicate the expected rate path through 2026 and beyond.
- Goldman Sachs economists are expecting two rate cuts, the first in September, unlike Bank of America, which sees one, while Citigroup is looking at three possible cuts, although it expects its dot plot to point to two.
- Economists expect the Fed to lower its GDP growth forecast and raise its expected inflation rate from March.
- U.S. stocks were mixed at the close on Wall Street on Tuesday, with the S&P 500 rising modestly, led by Apple Inc., which hit a new record high.
- The S&P 500 rose about 0.1% and the Nasdaq Composite added 0.6% to hit a new all-time high. In contrast, the 30-stock Dow Jones lost 157 points, or 0.4%.
- Brent crude futures rose 11 cents, or 0.1%, to $82.04 a barrel on Wednesday, while U.S. West Texas Intermediate (WTI) crude futures rose 18 cents, or 0.2%, to $78.10.
