From Investing.com: 2024-04-29 09:37:00

The Federal Open Market Committee (FOMC) of the U.S. Federal Reserve is set to meet on 30 April – 1 May to decide on key interest rates, with expectations of rates remaining unchanged. However, the U.S. Bureau of Economic Analysis (BEA) reported that GDP growth slowed to 1.6% in the first quarter, well below expectations. Despite this, the Fed’s preferred inflation rose for the third consecutive month, setting a hawkish tone for the upcoming meeting and suggesting that the U.S. dollar may continue to strengthen against major currencies.

Financial analysts believe that weak U.S. economic growth and accelerating inflation are delaying the possibility of a key rate cut in 2024. With no positive factors currently in sight, the FOMC may lean towards a tighter monetary policy. The combination of slowing GDP growth and rising inflation is expected to push the U.S. dollar to potentially rise above 160.00 by the end of the week.



Read more at Investing.com: The Fed Is Stuck Between Recession and High Inflation