The Federal Reserve’s Two-Day Policy Meeting Started Tuesday—Here’s What You Need to Know | Global News Avenue

procession Federal Open Market Committee (FOMC) The uncertainty background of the meeting began Tuesday.

The Fed’s policy-making team is discussing its progress in its fight against inflation and whether any Monetary Policy Change. The group plans to issue a statement at the end of the Eastern Time meeting at 2 p.m. Wednesday.

Fed Chairman Jerome Powell More details will then be provided and answered questions at the 2:30 pm press conference

Here is a discussion you need to know.

FOMC is unlikely to lower interest rates

The Fed will maintain its influence Federal funding rate The current range for the second consecutive meeting is 4.25% to 4.5%.

Traders see only 1% chance The Fed will lower its interest rates According to the CME Group’s FedWatch tool, in order to improve the economy, the tool predicts interest rate changes based on Fed funds futures trading data.

Fed officials repeatedly say they are taking it “Waiting” method Just as some economic policies proposed by President Donald Trump Uncertainty,,,,, Breaks confidence Among business leaders and consumers, Sent stocksand Propose fear of possible The economy is in a downturn.

Members will publish economic forecasts, but don’t expect clarity

The March meeting plan includes a summary of the economic forecast that is released four times a year at other FOMC meetings.

Economic forecasts will include a closely watched “DOT chart” that shows snapshots of 19 committee members Project future Fed funding interest rates. Economists will often find median forecasts to give an idea of ​​the path to federal funds rate, although this time may be more vague than in the past.

“We expect the median forecast (“point”) to remain unchanged during 2025-27. With market sentiment on the edge and the little attractive surrounding the May meeting, the Fed has the ability to patiently postpone the price reduction,” Nomura analysts wrote.

Economists also did not expect Powell to have many answers at the press conference. They hoped that he would reaffirm the Commission’s reluctance to make any decisions until Targeted tariff policies that are both moving and inappropriate Become more certain.