Fed Expected to Hold Rates Steady But Forecasts May Hint at Cuts This Year
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The Fed is expected to hold interest rates steady at 5.25% at this week's meeting, but investors are focused on economic forecasts for clues about potential rate cuts this summer.
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Markets could react negatively if the Fed's forecasts point to higher rates or fewer cuts than expected in 2023-2024.
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The "dot plot" shows where Fed officials individually expect rates to go, so shifts there signal changes in thinking.
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Investors widely expect rate cuts to begin by summer, but hot January/February inflation has dampened hopes of a cut this week.
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Fed Chair Powell will likely reiterate a "wait-and-see" approach to more data before changing course on rates, though cuts remain on the table for this year.