Jerome Powell, the Chairman of Federal Reserve, had said on the 25th of November that post the cut of 75 basis points, the Fed is of the opinion that the rates of interest will be remaining appropriate for the current time.
The watchers of Fed are still going to be watching the meeting on Wednesday closely for finding new clues on where the rates of interest are going to go from this point.
If there are no rate cuts by Fed on this Wednesday, the markets are going to be focused on the Fed’s timing for a move and if that move would be seeing a hike in the rate or a cut in the rates.
The Fed is going to release their new summary of projections related to the economy which is going to include the points which are going to map out each of the predictions of the members on where the rates of interest are going to be for the next few years.
However, with the Fed self-imposing a pause after the cut of 75 BP this year, the analysts and investors have been making their predictions on where the dot plots are going to predict the next year’s interest rates.
On the 4th of December, UBS had written that they were predicting the median dot for the year 2020 to show that there are going to be no hikes. Others have predicted that there may be a hike in the next year.
Powell is in all likelihood going to downplay the dot plot importance since a cumulative view has not been reached by the participants of FOMC to reach a consensus in the year where Fed has shifted their stance from the raising of rates to cutting them.
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