All eyes on whether US Federal Reserve will make explicit promise to cut interest rates
THE mood swings of the world’s financial markets could continue if there is any ambiguity in US Federal Reserve chairman Jerome Powell’s statements this week at the end of the central bank’s two-day policy meeting.
The Fed is all but guaranteed to leave rates unchanged at current levels between 5.25 and 5.5 per cent on Wednesday (Mar 20), but it could still prove a historic meeting with a profound impact on markets if the central bank definitively tips its hand on its next move.
The outcome that the stock market bulls are counting on is an explicit – if likely tacit – promise to cut interest rates in June. Most Wall Street brokerages anticipate that will be the date for the first of what is likely to be three quarter-point rate cuts in 2024.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
DBS customers unable to log into digibank, PayLah! on Thursday
NYSE-parent ICE’s revenue misses as muted IPO markets offset record energy trading
Amazon bets big with CrowdStrike on cybersecurity products
Goldman Sachs scraps EU-era bonus cap for top bankers in UK: source
Thomson Reuters lifts 2024 forecast on first quarter revenue result
US: Wall St opens higher after Fed leaves interest rates alone