FOMC Preview: Fed To Stay On Hold After June's Hawkish Shift
The Federal Reserve is expected to maintain current interest rates at its upcoming meeting due to cooling inflation and softer labor market data. While global energy price volatility remains a concern, the central bank appears inclined to pause further hikes for now.
Why it matters
Interest rate decisions by the Fed significantly impact global financial markets, currency strength, and borrowing costs for consumers and businesses.
FOMC Preview: Fed To Stay On Hold After June’s Hawkish Shift | Seeking Alpha
While the recent surge in oil prices has led markets to increase their expectations of a Federal Reserve rate hike, June’s inflation data came in well below forecasts, and labour market figures were softer than anticipated. As a result, we expect the Fed to leave policy unchanged at its 28-29 July meeting. Until the US and Iran can agree on a renewed ceasefire and energy prices come lower, we expect the dollar to stay strong.
Cooler inflation to keep the hawks at bay
The June Federal Open Market Committee (FOMC) meeting dispelled any fears about a potential politicisation of the Federal Reserve via the appointment of
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