A September start to cuts would likely increase the gap between the Fed and the European Central Bank (ECB), which began easing monetary policy rates last week. After two days of debate, the Fed will publish its interest rate decision on Wednesday afternoon, US time, and will also update its economic forecasts from March. Fed chair Jerome Powell has repeatedly insisted that the Fed is "data-dependent" and will not be swayed by politics. Cutting backFutures traders see almost no chance of a rate cut before September, according to data from CME Group. AdvertisementThis marks a dramatic shift from late last year, when the financial markets were pricing in as many as six interest rate cuts for 2024, with the first of them coming as early as March.

Source: Manila Times June 09, 2024 17:43 UTC