Fed Remains “Patient” on Monetary Policy, Investors Expect 1 Cut before Year’s End!
The minute released from the latest Fed's meeting stated that the Fed would remain patient on interest rates while markets expect one cut before year's end.
The U.S. Federal Reserve officials have released its minute on latest meeting that the committee had agreed to continue their “patient” move on monetary policy while stating that it could remain in place “for some time”.
“Members observed that a patient approach to determining future adjustments to the target range for the federal funds rate would likely remain appropriate for some time, especially in an environment of moderate economic growth and muted inflation pressures, even if global economic and financial conditions continued to improve,” the meeting summary stated.
The current weak inflation was viewed by Fed’s members as likely to be transitory. Meanwhile, inflation expectations over the next 5-10 years fell today to the lowest in more than 4 months.
However, markets are pricing in at least one cut before the end of the year. In addition, the U.S. President Donald Trump has pushed the Fed to lower rates, saying a cut of as much as a full percentage point would be appropriate.
