Today at 9:00 p.m. Egyptian time, the U.S. Federal Reserve's decision and expectations to stabilize interest will be issued by 5.50%. The most important part of the decision will be the bank's economic outlook and then the press conference of Jerome Powell, the federal governor.
Market prices have not changed significantly following the release of the U.S. Consumer Price Index report released yesterday, and the market is still pricing in the Fed's first rate cut in May next year, as there are nearly 110 basis points of rate cuts currently scheduled for the whole of 2024.
What can we expect if the Fed doesn't make a shift in language and if the bank sticks to the status quo? Markets are likely to be disappointed, and that could lead to some pullback from a strong rate cut in 2024.
Either simple hints by Powell at his press conference or a slip of the tongue would be more than enough to make traders defend their latest thinking.
Powell is responsible for doing nothing wrong during the press conference.
