From Livemint: 2024-04-30 09:25:27

1. The US Federal Reserve’s policy meeting begins today, with expectations of no rate cut amid inflation above 2%. The latest CPI data shows a 0.4% increase MoM and 3.5% YoY, above Street expectations. US GDP grew at a slow 1.6% annualised rate in the March quarter, raising concerns about growth and inflation.

2. Experts predict the Fed will likely pause interest rates as core inflation in the US hits 3.7%, leaving little room for rate cuts. The expectation is for two backloaded rate cuts this year due to a slowing US economy. The decision is not expected to have a significant market impact.

3. Inflation remains a key concern for the US Fed, with rates at 5.5% for 10 months and inflation above the 2% target. GDP growth was below expectations at 1.6%, leading to worries about stagflation. The Fed is expected to maintain rates at 5.5%, closely monitoring economic indicators.

4. The Fed’s monetary policy decisions are influenced by factors like inflation, employment stats, and economic growth. Maintaining inflation around 2% and achieving maximum employment are key priorities. Market dynamics, global trends, and public expectations also play a role in the decision-making process.

5. The US Federal Reserve is expected to maintain a data-driven approach, considering rising oil prices, higher inflation, and slow GDP growth. Commodity prices, supply chain disruptions, and economic activity impact will be closely monitored. Inflation levels remain a concern, with no immediate rate cut expected.



Read more at Livemint: US Fed meet begins today: What to expect amid sticky inflation? Top experts share their views