US Fed Meeting: America's central bank will announce monetary policy today, interest rates may remain stable
America's central bank, the United States Federal Reserve (US Fed) will announce monetary policy today. The two-day meeting of the Federal Open Market Committee of the US Fed will run from 12 to 13 December and the decisions taken in it will be announced at 12.30 AM Indian time tonight. It is expected that the US Fed can keep interest rates stable in the last monetary policy of the year.
The United States Federal Reserve (US Fed), America's central bank, will announce the last monetary policy of this year today on December 14, 2023 at 12.30 AM Indian time. The US Fed's monetary policy meeting is being held on December 12-13. This meeting of the US Fed is known as the Federal Open Market Committee meeting (FOMC).
If reports are to be believed, along with the interest rate, the economic projections report of the Central Bank is also expected to be released in this meeting. The effect of American monetary policy is visible in the global market. At the same time, since this is the last monetary policy of this calendar year, the eyes of the whole world are focused on it.
Expectations from US Fed's monetary policy
US interest rates are at the highest level in 20 years. The central bank has raised rates continuously in 2022 and 2023. If reports are to be believed, the US Fed may keep interest rates stable for the third consecutive time.
News agency Reuters, quoting CME Fedwatch tool, said in its report that most Wall Street traders expect Fed rates to remain unchanged at 5.25 to 5.50 percent. At the same time, there is a 77 percent possibility of rate cut during the upcoming meeting in May 2024.
AP has reported that central bank analysts are very positive about achieving 'soft landing'. In such a situation, inflation may reduce while higher interest rates prevent the US economy from going into recession.
How does it affect India?
The American economy affects all the countries of the world equally. The US Fed sets interest rates in monetary policy aimed at controlling inflation in the US. This interest rate controls the cashflow in the American economy, which directly affects the industries there.
The impact of monetary policy on US industry affects markets around the world. For example, if the Fed increases interest rates, foreign investors may withdraw money from the Indian market.