Recently, there is a development that will affect the markets: FED’s interest rate decision. As is known, the US Federal Reserve’s (FED) increase or decrease in the interest rate is one of the most valuable news affecting the markets. For this reason, investors follow the FED’s meetings and the FED President’s statements. In this article, we will talk about the FED calendar and an interesting assumption about interest rate hikes. Here are the details…
Will the Fed rate decision be announced this month?
Traders and investors from around the world follow the Fed’s interest rate decision. Decisions mostly affect the stock market, gold, cryptocurrencies and the US dollar situation. All right, when is the next rate decision? The interest rate meeting, which deeply affected the markets, will not take place in October. According to the calendar of the US Federal Reserve, the meeting for the next FED interest rate decision will be held on November 1-2. On the other hand, the last FED meeting of the year will take place on 13-14 December. At the meeting in December, the bank will announce its economic assumptions for the new year.
At the next meeting, experts expect the FED to raise interest rates by 75 basis points. The expectation for this is 81 percent. Koindeks.com As we have also reported, the FED is going to increase interest rates due to its efforts to reduce inflation. Last month, Fed Leader Jerome Powell said he would continue to raise interest rates “until he is convinced that inflation is going down”.
What are the expectations of the experts?
The decision of the FED and the general economic situation cause many experts to make statements about the bet. IMF 1st Deputy Leader Gita Gopinath stated that inflation will continue to be stubborn. He thinks that the FED’s failure to tighten monetary policy in such a situation will cause a lack of credibility. Therefore, he thinks that the FED should stick to its plans.
On the other hand, Lisa Cook, a member of the FED Board of Directors, joined the statements in the direction of continuing the interest rate hikes. In addition, they say that the effort to reduce inflation will continue without easing. Cook says inflation is now persistent and rather high. Philip Jefferson, another Member of the Governing Council, stressed the Fed’s determination to contain inflation.
In addition, Governing Council Member Christopher Waller announced that he expects additional rate hikes early next year. If it is increased by 75 basis points at the meeting in November, it will be the fourth consecutive rate hike. However, as we reported above, experts seem to think that the increases will end soon.
FED claim from the New York Times
Finally, the US-based New York Times reported that it is almost certain that the FED will announce a 75 basis point increase at the meeting to be held on November 1-2. According to the media organization, the FED will increase by 75 basis points in December, and the situation will even continue in the coming months.