{"id":81900,"date":"2024-05-02T11:37:29","date_gmt":"2024-05-02T08:37:29","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=81900"},"modified":"2024-07-15T11:38:46","modified_gmt":"2024-07-15T08:38:46","slug":"fed-holds-rate-steady","status":"publish","type":"post","link":"https:\/\/www.smartchinaeducation.com\/ph\/fed-holds-rate-steady\/","title":{"rendered":"Fed holds rate steady"},"content":{"rendered":"

The Fed maintained the current interest rates levels during their monetary policy meeting yesterday, as was widely expected by market participants. In the bank\u2019s accompanying statement, it was stated that \u201cIn recent months, there has been a lack of further progress toward the Committee’s 2 percent inflation objective\u201d, aiding the narrative of stagflation, despite Fed Chair Powell\u2019s dismissal of such views in his press conference following the decision. Nonetheless, the remarks, may be concerning ,as the bank may face increased pressure to maintain current interest rate levels for a prolonged period of time. Moreover, we notice a shift in tone from Fed Chair Powell, who stated \u201cit\u2019s unlikely that the next policy rate move will be a hike\u201d, a shift from the beginning of the year in which the narrative was seemingly around when rate cuts would begin. Yet it appears that the slight hawkish element that may have emerged appears to have been ignored by market participants.BoC Governor Tiff Macklem during his speech yesterday, stated that the bank expects \u201cCore inflation to continue to ease gradually\u201d, which could imply that the bank may be preparing to cut interest rates, or that pressure on policymakers to adopt a more dovish monetary policy stance may be increasing. The BoJ\u2019s March meeting minutes we released earlier on today. According to the bank\u2019s meeting minutes a policymaker expressed the view that \u201cit was appropriate to proceed deliberately but steadily with monetary policy normalization in response to developments in economic activity and prices\u201d. Apparently implying that the policymaker may  believe that the bank should raise rates further, which may support the JPY.<\/p>\n\n\n\n

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