Approaching FOMC Meeting What Do We Need to Know

Bulgarian time today at 21:00, the minutes of the Federal Open Market Committee (FOMC) meeting from November 12 to November 13 will be released.
Тази информация ще даде представа за това дали през последните месеци служителите на Фед са възприели по-благосклонна или по-ястребова позиция. Тъй като темповете на инфлация показват признаци на забавяне, но остават устойчиви, тези протоколи ще бъдат от решаващо значение за глобалните инвеститори, които се опитват да преценят бъдещите политики на Фед.
In May 2024, the annual inflation rate in the USA dropped to 3.3% from 3.4% in April. The Consumer Price Index (CPI) remained at the level of the previous month, while core inflation, excluding volatile elements, decreased to 3.4% annually and 0.2% monthly, both figures being slightly better than expected.
Despite the significant decrease from the peak of 9.1% in June 2022 to 3.4% in May 2024, inflation continues to concern the Federal Reserve. Over the past six to eight months, the average CPI has been around 3.2%. The Fed has made it clear that it will not consider lowering rates until the CPI reaches 2%, and the federal funds rate has remained at a 23-year high since July 2022.
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At the European Central Bank forum in Sintra, Portugal, Fed Chairman Jerome Powell indicated a slightly more dovish outlook. According to Michael Brown, senior strategist at Pepperstone, Powell acknowledged progress towards the 2% inflation target and noted the disinflationary trend as shown by recent CPI and PCE reports.
José Torres, senior economist at Interactive Brokers, emphasized that Powell remains cautious about the potential for recession. He highlighted Powell’s focus on balancing restrictive monetary policy to prevent a resurgence of inflation while avoiding an economic downturn.