The Fed will announce its policy rate at 2.30 ET, which is 22.30 Turkey time. The expectation is for them to raise the policy rate by 0.25 percentage points. Inflation has steadily eased in the last months, and equities performed well since the start of the year. If the Fed decides to raise rates by 0.5 percent, it might have an adverse effect on the market. This is not very unlikely considering the stronger-than-expected growth data. I don't think the Fed will keep rates stable, but if they do, the markets will probably rally.
The Fed sets the target federal funds rate at each meeting, which is the interest rate that banks charge each other for overnight loans. This rate influences the whole economy by affecting mortgage rates, credit card rates, and savings account rates. Lower rates stimulate more spending, investment, and growth and higher rates can have the opposite effect.
The Fed sets this rate based on its targets for growth, employment, and inflation. The Fed has been raising rates to lower inflation for the last few months. The Fed aims to put the US economy on a soft landing, decreasing inflation without sending the economy into a recession.
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