As the Federal Reserve gets ready to announce its first rate drop since early 2020, all eyes are squarely on the United States at the beginning of a big week for economic data and central bank pronouncements.
After the Federal Open Market Committee’s most recent policy meeting ends on Wednesday, it will be lowered from its current target range of 5.25%–5.5%, which it has been at since July of last year.
As far as Fed Chair Jay Powell has provided guidance, that is all.
There is currently disagreement in the financial markets on the likelihood of a quarter-point or half-point reduction due to the recent slowdown in the US economy, which has raised concerns about a recession.
Anticipating Thursday’s rate decision from the Bank of England, there is no such difference in expectations.
Following the quarter-point drop in August, markets and economists concur that the bank rate will not move lower at the end of its meeting.
Even though new data also points to a slowdown in economic output, wage growth is still a source of concern for UK policymakers.
