economy
What to expect from the Federal Reserve monetary policy statement
At 2 p.m., the Federal Open Market Committee of the Federal Reserve Board will release its statement on monetary policy. The committee will keep the federal funds target range unchanged at 3.50%–3.75%. The fed funds rate is a key interest rate tool of the committee.
TL;DR
- The Federal Open Market Committee will keep the federal funds target range unchanged at 3.50%–3.75%.
- Additional interest rate cuts are expected to be limited to at most one this year.
- The committee requires greater confidence that inflation is moving toward the 2% target.
- The Fed is concerned about the cumulative effect of four supply shocks on inflation.
- Wage inflation is identified as a key metric to watch.
- The committee is aware of its dual mandate: low inflation and full employment.
- There is political speculation regarding Jerome Powell's potential departure as chairman.
- Kevin Warsh is likely to be confirmed as Powell's successor.