Stubborn inflation likely to prompt Fed to maintain interest rates – Emirates NBD

Getty Images

This expectation is supported by higher-than-expected inflation data and signs of improvement in the labour market, which could potentially lead to increased inflation, according to a report by Emirates NBD Research

Staff Writer, Mubasher

March 20, 2024

PHOTO

The Federal Reserve (Fed) is expected to maintain interest rates at 5.50% during its upcoming two-day monetary policy meeting, concluding on 20 March.

Furthermore, comments from Fed officials, including Chairman Jerome Powell, suggest a firm commitment to ensuring that inflation trends downward before considering any interest rate cuts, the report stated.

However, the report also anticipates three 0.25% rate cuts in 2024, with the first expected to occur during the June meeting of the Federal Open Market Committee (FOMC).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.