Today we will have very important data that can help the markets take a direction in the coming period, and one of the main events that will be focused on today will be the US Consumer Price Index for May, which will be released at 3:30 pm Egypt time, followed by the decision of the Federal Open Market Committee on the interest rate at 09:00 pm.
We expect the Fed to keep its monetary policy unchanged, and the public comments of Fed officials have largely closed the door to cuts before the fall of this year, at the earliest.
Since it is a quarterly meeting, we will have a point chart of the upcoming economic forecasts, and the average interest rate forecast in the updated point chart is likely to indicate only two interest rate cuts this year instead of three, while the economic forecast is likely to remain little changed.
The focus will be on the press conference that Fed Chairman Jerome Powell will hold after the meeting, and Powell is likely to stick to the message he delivered at his press conference after last May's meeting.
He said that the Federal Open Market Committee is on hold regarding interest rate cuts until officials gain more confidence that inflation is heading sustainably towards an annual rate of 2%.
The release of the Consumer Price Index for May is unlikely to strengthen this confidence, as economists ' combined forecasts call for a 0.1% increase in inflation in May, the opposite of what is announced in the economic agenda.
