Critical Week in the USA: Fed’s First Interest Rate Decision for 2024 and Unemployment Rates

Global markets are awaiting the Federal Reserve’s first interest rate decision for 2024, which will be announced this Wednesday. Along with the interest rate decision, the unemployment rates for January are also expected to be released.

The Federal Reserve’s interest rate decisions are closely monitored during periods of economic uncertainty in the United States. For the first interest rate decision of 2024, which will be announced on Wednesday, interest rates are expected to be held steady. According to the CME, the probability of maintaining steady rates is shown to be 96.9%.

For the second interest rate decision in March, the probability of a 25 basis point cut in interest rates is shown as 47%, but some indicators and comments keep this probability above 50%. U.S. inflation indicators, on the other hand, show that inflation has significantly decreased from its peak levels.

Interest Rate Cuts Pointed to for March

Nevertheless, the Fed is expected to start lowering interest rates in March. According to SCMP, investors are almost equally weighing the possibility that the U.S. Central Bank will start reducing borrowing costs at the March meeting. On the other hand, there are concerns that consumer spending remains strong, which could apply inflation pressure. Additionally, the publication of the January unemployment rate in the U.S., which will be announced this week, will also be a significant factor.

Especially if inflation continues its downward trend, the Fed is expected to start lowering interest rates from March onwards.

Previous Article

WEN Airdrop Leads to Incredible Surge in New Addresses on Solana Network

Next Article

Support for Cryptocurrency is Increasing in the U.S. Senate

Related Posts
Read More

Siege Exercise From China To Taiwan

China is conducting a military exercise targeting Taiwan due to its independence demand. According to Chinese media, the Beijing government is involved in this operation with long-range rockets, naval destroyers, missile boats, thousands of soldiers, and warships.