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PT Solid Gold Berjangka | Fed Gave no Indication of Possible Rate Cuts at Last Meeting, Minutes Show

01:20 22 November in Fiscal & Monetary, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP by admin_sgb_tcc
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Federal Reserve The Fed Fiskal & Moneter FOMC Meeting Minutes

Solid Gold Berjangka | The information you provided is a summary of the Federal Reserve’s most recent meeting held on October 31-November 1. Here are some key points from the provided text:

  1. Interest Rates: Federal Reserve officials are not inclined to cut interest rates anytime soon. This decision is influenced by the fact that inflation remains above the central bank’s target.
  2. Inflation Concerns: The Federal Open Market Committee members express concerns about inflation, fearing that it could persist or rise further. They emphasize the need for a “restrictive” monetary policy until data convincingly shows a return to the central bank’s 2 percent inflation goal.
  3. Policy Outlook: Participants in the meeting believe it is crucial to maintain a sufficiently restrictive monetary policy to bring inflation back to the Committee’s 2 percent objective over time.
  4. Data-Driven Approach: Members of the Federal Reserve indicate their intention to base their decisions on the totality of incoming information and its implications for the economic outlook and the balance of risks.
  5. Market Sentiment: Despite the Fed’s stance, there is overwhelming sentiment on Wall Street that the Fed has finished raising interest rates. Traders in the fed funds futures market are not expecting further rate hikes and are even pricing in the possibility of rate cuts starting in May. The market expects the equivalent of four quarter percentage point cuts before the end of 2024.
  6. No Indication of Rate Cuts: While market sentiment suggests an expectation of rate cuts, the minutes do not indicate that Federal Reserve members discussed when they might start lowering rates. This lack of discussion was also reflected in Chairman Jerome Powell’s post-meeting news conference.

In summary, the Federal Reserve appears cautious about cutting interest rates in the near term, prioritizing the need to address inflation concerns. However, market expectations suggest a different sentiment, with traders anticipating rate cuts in the coming months.

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