The post What to expect from Federal Reserve’s upcoming minutes appeared on BitcoinEthereumNews.com.

The anticipation surrounding the Federal Reserve’s latest minutes release is akin to waiting for a storm to break. With the market’s eyes firmly fixed on the horizon, expectations are high, or rather, weighted with a mix of skepticism and hope. Jay Powell, since the January policy meeting, has shown a steadfast resolve against the market’s premature bets on significant interest rate reductions. This unwavering stance is set to be a cornerstone of the minutes set to be unveiled this Wednesday, especially in light of the persistent inflationary pressures that refuse to back down. Following a period where the Federal Reserve maintained interest rates within the 5.25 to 5.5 percent range last month, the message was clear: policymakers forecast only a trio of rate cuts within the year. This projection starkly contrasts the market’s earlier optimism, which gambled on up to five cuts in 2024, harboring expectations for a policy ease sooner rather than later. Recent developments, however, particularly two reports indicating higher-than-anticipated inflation, have nudged market expectations closer to the Federal Reserve’s more conservative outlook. Market Misalignments and Monetary Musings As we delve deeper into the dynamics between market predictions and the Federal Reserve’s stance, a fascinating narrative unfolds. The disparity in expectations, once vast, has narrowed, yet a gap remains. The Federal Reserve’s own projections suggest a reduction of 75 basis points in interest rates for the current year, whereas the Fed funds futures market hints at a slightly more aggressive cut of 89 basis points. This discrepancy, while seemingly minor, underscores a broader theme of uncertainty and the complex interplay of economic indicators. This year has been marked by a recalibration of market sentiment, driven by a reevaluation of every piece of economic data. Initial forecasts had leaned towards a more substantial easing of monetary policy, anticipating a…

---

Filed under: News - @ February 19, 2024 8:12 pm