Federal Reserve Expected to Maintain Interest Rates Amid Economic Forecasts

According to Odaily, the Federal Reserve is set to announce its interest rate decision and latest Summary of Economic Projections (SEP) at 2:00 AM UTC+8 on Thursday, followed by a press conference with Federal Reserve Chair Jerome Powell at 2:30 AM. The market widely anticipates that the Federal Open Market Committee (FOMC) will keep interest rates steady at 4.25%-4.5%. A recent Reuters survey indicates that out of 105 economists surveyed, 103 expect rates to remain unchanged, while 2 predict a 25 basis point rate cut. In the same survey, 59 of the 105 economists forecast that the Federal Reserve will resume rate cuts in the next quarter, possibly in September. Additionally, 60% of economists anticipate two rate cuts this year, aligning with the median from the March dot plot and consistent with monetary market pricing, which expects a relaxation of 46 basis points by the end of the year.