The Fed will meet during this week on Tuesday and Wednesday. On Wednesday evening, the monetary policy statement will be released, followed by the press conference of US Federal Reserve Governor Jerome Powell.
Hopes for an early cut in interest rates this year have receded, especially with inflation returning to rise again in light of positive employment data in the last two months, and we also have NFP non-farm payrolls data at the end of the week.
Which may give some clarity on monetary policy in the coming period.
Here are some economists ' forecasts regarding this week's meeting of the US Federal Reserve:-
- Chief economist at Barclays Bank جي Giannoni says that inflation data is back on the rise this year, which will force Powell to become more hawkish again.
- Diane Swonk, chief economist at KPMG, also said that the goal of tightening is to make financial markets fully reflect the easing of financial conditions that began when Powell and his colleagues began to make cautious noises.
- JPMorgan chief economist Michael Feroli also said that he expects Powell to confirm that the Fed will maintain a tight monetary policy in order to control inflation and gain confidence.
- Other economists said that the yield on 10-year Treasury bonds reached its highest level last week and could exceed the October peak of about 5%.
- As Northern Trust chief economist Karl Tanenbaum said, the Fed is back to square one in the level of confidence among officials about returning to the 2% target, and the question now is how many months of calm inflation data the Fed needs before confidence is restored.
- Scott Anderson, chief economist at BMO Capital Markets, said that the markets are now pricing in only one interest rate cut this year, and the forecast at the beginning of the year of six or seven interest rate cuts during 2024 will remain just a dream.
It is worth noting that some voices are beginning to voice the likelihood that the Fed will raise interest rates again, as economists say that the chances seem slim, but they will not say that it is impossible.
