- FOMC meeting scheduled on March 18-19, probably Fed will keep 4.25-4.5
- Jerome Powell will discuss CPI & PPI, economic issues and projections
- FOMC meeting will focus on the dot plot and Powell’s press conference
FOMC meeting scheduled on March 18-19, and will discuss CPI and PPI declines in February and other economic data and projections – but as Powell had indicated before, he will not be in a hurry to cut rates, and we will probably get the current 4.25-4.5 interest rates.
FOMC meeting in March: What to Expect
It is important to understand the context of the March FOMC meeting – it is a combination of very contradictory factors. One source says that inflation is declining to 1.68%, and another to 2.8%, while the intense or even drastic measures of Trump’s administration to address the budget deficit and national debt are in force. Also, CPI and PPI declined in February, which could also be an additional reason to lower interest rates.
However, there is another side, and as Jerome Powell has said before, he will not be in a hurry to cut rates, largely because the inflation target has not yet been fully achieved, and there are a number of other factors that are creating uncertainty and risk in the global economy. And, recently, we’ve dived into factors that add to that uncertainty, like Trump’s trade wars, potential CPI and PPI growth as a consequence, and the risks of higher inflation that Blackrock CEO Larry Fink recently warned about.
Yes, this Trump strategy should at least protect the US from financial collapse and at most lead it to a new golden age, and we recently saw how Scott Bessent has highlighted this urgently. Jerome Powell has to balance the current situation, and such economic uncertainty and risky initiatives cannot be ignored while the Fed makes decisions to lower interest rates.
So we see how the expectations of the vast majority, namely 99% agree that we will not see interest rates fall and they will remain at the current level of 4.25-4.5.
Conclusion
At the moment the situation seems quite clear, because taking into account the above-mentioned and implying many other things that we are yet to hear from Jerome Powell, it seems that right now there is no reason to raise interest rates, but no one will be in a hurry to lower them either.
However, the actual decision is yet to be known, and the grounds and assumptions behind it will be critical, which will undoubtedly affect the markets, and crypto markets as well, as we have already seen last time.
We look forward to providing you with up-to-date information from the source. Stay tuned for updates and be adaptive in the rapidly evolving political, financial, and crypto landscape.
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