Federal Reserve Holds Interest Rates, Hints at Future Cuts

Schedule of interest rate hike and rate cut meetings, currently the earliest rate cut is expected to be JuneThe Federal Reserve continued to remain on hold and removed language suggesting that it may raise interest rates in the future, but at the same time, it poured cold water on market participants who were expecting a rate cut in the near future.On Wednesday, January 31, Eastern Time, the Federal Reserve announced after the FOMC meeting of the Monetary Policy Committee that it would maintain the target range for the federal funds rate at 5.25% to 5.50%. The Federal Reserve’s policy rate has remained at a 22-year high since raising interest rates in July 2023So far, in the current tightening cycle from March 2022 to the present, the Federal Reserve has not raised interest rates for four consecutive meetings. As with the previous 12 meetings since July 2022, FOMC voting members unanimously voted in favor of passing this interest rate decision.Before the resolution was announced on Wednesday, Nick Timiraos, a reporter known as the "New Fed News Agency", had already predicted that the Federal Reserve would delete language suggesting further interest rate increases. He published an article saying that the Federal Reserve is ready to cut interest rates. The current question when to actAfter announcing the resolution, Timiraos issued a document saying that since the interest rate hike in July last year, the Federal Reserve has been putting the possibility of raising interest rates on the table. This time, the Federal Reserve has abandoned this interest rate guidance. The officially adjusted new guidance is flexible, allowing the Federal Reserve to adjust interest rates in the future. Interest rates can be cut in a few months as long as the inflation risk is believed to be over. At the same time, the Fed hinted that the guidance change was not a sign that a rate cut was imminent.When the interest rate cut comes, the bull market startsJoin me to join a group to keep warm, click my follow button. Share high-quality projects for free for a long time and lead the way to riches. You won’t regret knowing me.

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