From Forbes: 2024-06-07 07:00:00

The Federal Reserve is expected to maintain its benchmark interest rate at 5.25-5.5% to combat inflation, impacting the economy. Traders predict a possible rate cut in September, but recent labor reports have decreased those odds to 50.8%. Policy committee members are waiting for steady inflation before considering rate cuts.

FOMC members will focus on quarterly economic projections, potentially lowering the expectation of three rate cuts in 2024 due to stubborn inflation. Bank of America Securities predicts two rate cuts this year, with a cutting cycle beginning in September. Economic projections may be influenced by the Consumer Price Index report for May.

Fed Chair Powell’s post-announcement conference remarks could shape the interest rate outlook and market movement. Despite concerns about inflation, Powell is unlikely to raise interest rates further. Discussions on future rate cuts hinge on the May CPI report, with a strong showing possibly shifting expectations for the year.

Read more at Forbes: What to Expect From Next Week’s Fed Meeting on Interest Rates