The FOMC is expected to cut interest rates by 25 basis points with potential dissent, reflecting the tension between inflation risks and weakening employment.
Federal Reserve Chairman Jerome Powell is likely to emphasize data-driven policymaking ahead of January, while the new dot chart may still underestimate the influence of the incoming Trump administration's policies, reports Rabobank Senior US Strategist Philip Marey.
Powell is expected to downplay policy divisions.
"We expect the FOMC to cut the federal funds rate by 25 basis points to its target range of 3.50–3.75% from 3.75–4.00%. We also expect dissent, likely in the opposite direction."
"At the press conference, Powell is likely to downplay any dissent as arising from the challenging environment with rising inflation risks and declining employment risks. Regarding the January meeting, he is likely to emphasize that the Fed is data-driven and making decisions at each meeting."
"This new dot plot is interesting, but it may underestimate the impact of the Trump administration on the Fed next year. Going forward, we expect the Fed to continue its rate-cutting cycle at least until its neutral rate forecast is reached." (alg)
Source: FXstreet
National Economic Council Director Kevin Hassett stated that the Federal Reserve should cut interest rates at its upcoming meeting next week and predicted a reduction of 25 basis points. In an interv...
The Federal Reserve is expected to reduce interest rates by 25 basis points to a range of 3.5%-3.75% at next week's meeting, but Bank of America says Chair Jerome Powell faces the most divided committ...
Treasury Secretary Scott Bessent said Wednesday he will push for a new rule requiring regional Federal Reserve chairpersons to live in their district for at least three years. The initiative is Besse...
Inflation in the United States continues to show signs of moderation. The latest data shows CPI inflation hovering around 3% annually, while PCE inflation the Federal Reserve's favorite indicator is h...
Federal Reserve Chairman Jerome Powell appeared at Stanford's Hoover Institution as part of the George P. Shultz Memorial Lecture Series: Shultz and Economic Policy. Instead of discussing inflation, i...
Gold (XAU/USD) strengthened slightly on Friday (December 5th) as the latest US economic data reinforced expectations of a Federal Reserve interest rate cut next week. Steady PCE inflation and easing consumer inflation expectations kept the policy...
Oil prices rose as U.S. stocks continued their rally, extending a two-day rally, while investors assessed the prospects for a ceasefire in Ukraine and signs of a widening global surplus. West Texas Intermediate crude oil prices traded above $60...
The FOMC is expected to cut interest rates by 25 basis points with potential dissent, reflecting the tension between inflation risks and weakening employment. Federal Reserve Chairman Jerome Powell is likely to emphasize data-driven policymaking...
Asia Pacific stock markets opened quietly on Wednesday morning, with investors awaiting the release of key economic data from the United States and...
Private businesses in the US cut 32K jobs in November 2025, following an upwardly revised 47K gain in October, and compared to forecasts of a 10K...
US President Donald Trump has hinted that Kevin Hassett, the current chairman of the National Economic Council, whom Donald Trump appointed to the...
A five-hour meeting between Russian President Vladimir Putin and Donald Trump's special envoy, Steve Witkoff, and his son-in-law Jared Kushner, in...