Preview of November FOMC Meeting: Fed's Subsequent Rate Cut Path Faces Another Test


Xinhua Finance Client
2024-11-07 13:59 Chinese Economic Information Society Xinhua Finance Official Account, high-quality financial field creators
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Xinhua Finance and Economics Shanghai, November 7th (Ge Jiaming) The Fed's interest rate decision this time will be postponed for one day, and the final interest rate decision will be announced at 3 am Beijing time on November 8th (Friday).

Analysts generally believe that the Fed's 25 basis point rate cut is basically 'set in stone,' or will lower the Intrerest Rate from 4.75%-5% to 4.5%-4.75%, but the policies of the new U.S. government and the current contradictory and Fluctuation-prone economic data in the United States make the future Intrerest Rate path of the Fed full of variables.

According to the Federal Reserve observation tool of the Chicago Mercantile Exchange (CME), the market expects the Fed to cut interest rates by 25 basis points at the remaining two meetings this year. Traders have reduced their expectations for rate cuts by the Fed in 2025. Currently, traders anticipate that the Fed may cut rates twice in the first half of 2025 and then stop cutting rates, bringing the Benchmark Interest Rate down to 3.75%-4%.