Have a nice evening investors! Here is a summary of yesterday's Federal Open Market Committee (FOMC) statement. For those who haven't gotten to it yet. 😉🌐
1) Fed decides to leave rates unchanged at 5,50 %, the fourth meeting in a row with this stable policy.
2️) Significantly , theFed statement no longer mentions raising interest rates. Instead, it talks about possible "adjustments" of the target range, suggesting a thoughtful approach to setting monetary policy.
3️) Fed reassures that risks to the economy are now balanced, job growth remains strong, and inflation, while moderating slightly, remains at elevated levels. So we are unlikely to see an interest rate cut any time soon.
4️) Policymakers stress that a rate cut is not on the horizon until there is more certainty that inflation will approach 2% target.
TheFedstatement surprised the market by defying expectations for an early rate cut. The Fed reiterates that further action will depend on incoming economic data, and currently not ready to cut rates. The Fed is not likely to cut rates until May! 📊
How do you see interest rates being cut? Will the year 2024 a nice fairy tale or will it turn into hell?