Fed enters blackout period ahead of next week’s FOMC meeting: InfoQuest

Officials from the US Federal Reserve (Fed) have entered a blackout period ahead of the Federal Reserve’s monetary policy meeting (FOMC) on December 12-13.

Fed regulations prohibit Fed officials from making comments or giving interviews during the blackout period regarding monetary policy. It begins the second Saturday before the FOMC meeting and ends on the Thursday after the FOMC meeting, to prevent the public from interpreting it as an indication of interest rate action by the Fed at the next monetary policy meeting.

Investors place nearly 100% of their weight in expectations. The Fed will announce that interest rates will remain steady at next week’s meeting. Before interest rates are cut at the earliest at the March 2024 meeting

CME Group’s recent FedWatch tool indicates that investors give a 97.5% weight to expectations that the Fed will hold interest rates at 5.25-5.50% at the December 12-13, 2023 meeting, and an 83.8% weight to expectations that the Fed will hold rates at 5.25-5.50% at the December 12-13, 2023 meeting. Benefit. Prices in January 2024.

Additionally, investors give a 51.7% weight to the Fed cutting interest rates by 0.25% to 5.00-5.25% at its March 2024 meeting.

Such predictions are made. Although Fed Chair Jerome Powell said that last week it is still too early for the Fed to declare victory over inflation. It is too early to predict interest rate cuts.

“It is too early for us to confidently conclude that we have reached a sufficiently tight policy stance. Or to predict when we will ease monetary policy? We are prepared to continue implementing tight policies. If this is the right thing to do,” Powell said at a conference in Atlanta. “Until we become confident that inflation will return to 2%.”

Mr. Powell said although inflation has declined recently it is still above the Fed’s target of 2%.

In addition, Mr. Powell stated that the Fed will not determine the direction of policy in advance. Decisions at each meeting will depend on the information the Fed receives. And indicators of trends in economic activity and inflation. Including maintaining a balance of risks

By InfoQuest News Agency (04 Dec 23)

Tags: blackout period, Fed, Federal Open Market Committee, Federal Reserve, Fed