It seems that the Fed will not raise interest rates today, but the likelihood of continuing to encourage traders to diminish their budget remains high. These expectations are the result of rising inflation and low unemployment. Investors, however, have appreciated the chances of raising interest rates at the end of the Fed’s two-day meeting on Wednesday, especially given the bank’s adherence to interest-rate increases in recent years, followed by a press conference. The Fed will announce its decision at 21:00, and Jerome Powell’s statement is not forthcoming.
“And at the moment, Fed members have not signaled anything to change their moods, and for that reason we do not expect an action tonight,” said Michael Ferroli of JP Morgan Chase.
To date, the central bank plans two more interest rates, while a large majority of market participants are of the opinion that three upgrades will be fully adequate to current economic conditions. Unemployment is 17 years old and Trump’s tax cuts are expected to continue to support the US economy. Inflation has already reached the Fed’s target of 1.9% in March.
Earlier today, ADP published its data on new jobs in the US, with current data 204K higher than expected. However, the Dollar Index failed to jump over the resistance zone. We are waiting for the Fed’s decision, but I do not think we will see big moves. Higher volatility is possible in the minutes after the central bank’s decision.
Trader Petar Milanov