US Fed decision today: It is widely expected that the US Federal Reserve will not make any changes in the policy rates and stance on Wednesday, May 1. Nevertheless, all eyes will be on Fed Chair Jerome Powell’s press conference after the FOMC (Federal Open Market Committee) interest rate decision later today.
Recently, Powell stated that considering the recent macroeconomic indicators, it would take longer than expected for inflation to return to the Fed’s 2 per cent target.
Considering the recent macroeconomic trends in the US and current geopolitical scenarios, it is safe to say that the Fed’s fight against inflation will continue in the near future. Experts are divided in their projection about rate cuts; some still expect two rate cuts this year while some say there may be no rate cut in the calendar year 2024.
Also Read: US Fed meet: What do dimming rate cut hopes mean for Indian stock market?
Let’s take a look at five key factors that will shape the Fed’s policy decision on Wednesday:
