US Fed Meet Highlights: Powell-led FOMC keeps key rates unchanged at 5.25-5.50% for 5th straight meeting
1 min read . 21 Mar 2024
US Fed Meet Highlights: The US Federal Reserve announced its interest rate decision today after a two-day Federal Open Market Committee (FOMC) meeting, leaving the benchmark interest rates unchanged at 5.25 per cent - 5.50 per cent for the fifth straight meeting, in line with Street estimates. However, the FOMC said that it expects three rate cuts in 2024 despite sticky inflation.
The rate-setting panel ended its second policy-setting meeting of the year and unanimously voted to hold the policy rate at the 23-year high mark, but said it "does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward two per cent."
FOMC members also left the median projection for interest rates at end-2024 at the midpoint between 4.50 and 4.75. This means they still expect 0.75 percentage points of cuts before the end of the year, which would likely translate into three 0.25 percentage point cuts.
Alongside its rate decision, Fed policymakers also updated their economic forecasts, sharply upgrading the US growth outlook for this year to 2.1 percent, from 1.4 percent in December. Fed policymakers left the headline inflation forecast unchanged, but slightly raised the outlook for annual so-called "core" inflation -- which excludes energy and food prices -- to 2.6 per cent.
After raising the policy rate by 5.25 percentage points since March of 2022 in one of the swiftest Fed reactions to rising price pressures, the central bank has now kept the policy rate on hold since July 2023.
Stay tuned to our US Fed Meeting Live blog for the latest updates on FOMC meeting outcome.
{{^adFree}}
21 Mar 2024, 01:33 AM IST
US Fed Meet Live: This live blog session has ended
Stay connected to Live Mint for all business and market updates.
21 Mar 2024, 01:32 AM IST
US Fed Meet Live: FOMC to meet next in April/May 2024
US Fed Chair Powell-led FOMC will now meet on April 30-May 1 to deliberate for the next set of policy decisions.
{{^adFree}}
21 Mar 2024, 01:27 AM IST
US Fed Meet Live: Key highlights of Powell-led FOMC decision
-Benchmark interest rates unchanged at 5.25-5.50 per cent, held at 23-year high mark
-Fed still expects to make three rate cuts in 2024 despite sticky inflation
-US GDP growth raised to 2.1 per cent for 2024, headline inflation forecast unchanged, core inflation raised to 2.6 per cent
-Fed to not cut rates until inflation move sustainably to two per cent target.
21 Mar 2024, 01:20 AM IST
US Fed Meet Live: US markets after Fed policy verdict
-The S&P 500 topped 5,200, while the tech-heavy Nasdaq 100 rose about one per cent. Two-year yields declined seven basis points to 4.6 per cent.
-The Dow Jones Industrial Average was up 321 points, or 0.8 per cent.
-The dollar index, a measure of the US currency against six major trading partners, eased 0.34 per cent.
{{^adFree}}
21 Mar 2024, 01:03 AM IST
US Fed Meet Live: Canadian dollar climbs to six-day high on Fed rate cut forecast
Canadian dollar strengthened to a six-day high against its US counterpart on Wednesday as investors cheered the Federal Reserve's move to stick with its interest rate-cutting forecast for 2024. The loonie was trading 0.5 per cent higher at 1.35 to the US dollar, or 74.07 US cents, after touching its strongest intraday level since last Thursday at 1.3491. Wall Street rallied, while US Treasury yields fell and the US dollar lost ground against a basket of major currencies.
21 Mar 2024, 01:01 AM IST
US Fed Meet Live: Gold advances on renewed rate cut bets after Fed verdict
Gold climbed over one per cent on Wednesday after the US Federal Reserve indicated they expect to reduce interest rates by three quarters of a percentage point by end-2024, sending the dollar and Treasury yields lower. Spot gold rose 1.2 per cent to $2,183.02 per ounce. US gold futures settled 0.1 per cent higher at $2,161, according to news agency Reuters. Gold prices had dipped nearly one per cent last week after hotter-than-expected February macroeconomic data indicated still persistent inflation, slashing rate-cut hopes.
{{^adFree}}
21 Mar 2024, 12:58 AM IST
US Fed Meet Live: S&P 500 breaks above 5,200 for the first time after Fed decision
US stocks rose on Wednesday and the S&P 500 topped the 5,200 level for the first time ever after the Federal Reserve held rates at a 23-year high and maintained expectations for three cuts before the end of 2024, according to reports.
The latest projections show the median policymaker expects the Fed's benchmark overnight interest rate to fall three-quarters of a percentage point in 2025, less than the one percentage point projected in December as part of a slightly slowed rate cut path, and by three-quarters of a point in 2026 as well, the same as anticipated previously.
21 Mar 2024, 12:51 AM IST
US Fed Meet Live: Powell says job market in good shape, doesn't see cracks in labor
Powell pushed back on anecdotal signs the job market is running into trouble on Wednesday. “The labor market is in good shape," Powell said in a press conference following the end of the policy-setting FOMC meeting.
"I don’t see those cracks today" in labor markets, which is strong with a reduction in the extreme imbalances that followed the start of the pandemic, Powell said. “In many respects," he added, job market conditions "are returning more to their state in 2019."
{{^adFree}}
21 Mar 2024, 12:50 AM IST
US Fed Meet Live: Fed leaves interest rates at 23-year high mark: Check 5 key highlights
The US central bank has maintained its key overnight interest rate at the 23-year high mark since July, but has signaled three rate cuts in 2024, despite stick inflation. Fed policymakers foresee fewer rate cuts in 2025, and slightly raised the US inflation forecasts. The rate-setting panel said that it does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward the two per cent target. CHECK 5 KEY HIGHLIGHTS
21 Mar 2024, 12:36 AM IST
US Fed Meet Live: Dollar slips after Fed statement, yen weakens
The dollar slipped and the yen held steady near multi-decade lows on Wednesday after the Federal Reserve left interest rates unchanged as expected and said it still projected three rate cuts this year even as inflation remains elevated. The dollar index, a measure of the US currency against six major trading partners, fell 0.01 per cent, while the yen weakened 0.56 per cent at 151.69 per dollar.
{{^adFree}} {{/adFree}}
21 Mar 2024, 12:35 AM IST
US Fed Meet Live: Higher inflation data hasn't changed trend: Powell
Higher inflationary data has not changed its overall trend downward, said Powell. Major inflationary data points — the consumer price index and personal consumption expenditure — rose for both January and February. Fed Chair Jerome Powell thinks this data is just further proof of inflation’s nonlinear path downwards, reported CNBC.
“I think they haven’t really changed the overall story, which is that of inflation moving down gradually on a sometimes bumpy road toward two per cent" he said during a press conference on Wednesday afternoon. “We are not going to overreact to these two months of data, nor are we going to ignore them."
21 Mar 2024, 12:33 AM IST
US Fed Meet Live: Oil slips as investors weigh Fed rate decision
Oil prices fell on Wednesday as the US Federal Reserve held interest rate steady and demand concerns continue to weigh. Brent crude futures for May settled down $1.43, or 1.64 per cent, at $85.95 a barrel. US West Texas Intermediate futures for April delivery, which expire on Wednesday, ended $1.79, or 2.14 per cent, lower at $81.68.
The more active May WTI contract settled down $1.46 at $81.27 a barrel. Brent had settled at its highest since October 31 in the previous session at $87.38 a barrel, while WTI hit its highest since October 27 at $83.47, according to Reuters.
21 Mar 2024, 12:29 AM IST
US Fed Meet Live: Policy rate at its peak, says Powell
Powell reiterated on Wednesday that policymakers still intend to cut rates before the end of this year, assuming economic growth continues, reported CNBC.
“We believe that our policy rate is likely at its peak for this type of cycle and that if the economy evolves broadly as expected, it will likely be appropriate to begin dialling back policy restraint at some point this year," Powell said.
“The risks are really two-sided here," Powell said. "We’re in a situation where if we ease too much or too soon, we could see inflation come back. And if we ease too late, we could see unnecessary harm to employment."
21 Mar 2024, 12:27 AM IST
US Fed Meet Live: Fed's Powell still expects inflation to ease gradually
Federal Reserve Chairman Jerome Powell said on Wednesday that even with unexpected strength in recent inflation data his outlook for price pressures is relatively steady.
Despite the recent data, the numbers "haven't really changed the overall story, which is that of inflation moving down gradually, on a somewhat bumpy road," Powell said at a press conference following the FOMC meeting.
21 Mar 2024, 12:26 AM IST
US Fed Meet Live: Wall Street moves higher as Federal Reserve still sees 3 cuts to rates this year
US stocks are moving higher Wednesday after the Federal Reserve indicated it's still likely to deliver the cuts to interest rates this year that Wall Street craves, even though concerns are growing about stubbornly high inflation.
The S&P 500 rose 0.5 per cent in afternoon trading after flipping between tiny gains and losses before the Fed’s announcement. The Dow Jones Industrial Average was up 221 points, or 0.6 per cent, as of 2:45 p.m. Eastern time, and the Nasdaq composite was 0.6 per cent higher.
21 Mar 2024, 12:21 AM IST
US Fed Meet Live: US Fed Chair Powell says 'inflation is still too high'
US inflation has eased substantially while the labor market remains strong, Federal Reserve Chair Jerome Powell said Wednesday, but “inflation is still too high." Speaking at a press conference after the Fed's latest decision to hold interest rates at a 23-year high for a fifth straight meeting, Powell added: "Ongoing progress in bringing it down is not assured, and the path forward is uncertain."
21 Mar 2024, 12:16 AM IST
US Fed Meet Live: Fed to not cut rates until inflation moves towards 2%
‘’The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward two per cent. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 percent objective,'' said the Fed in its statement.
21 Mar 2024, 12:08 AM IST
US Fed Meet Live: Longer-run rate higher
One key measure, the longer-run policy rate, was moved higher by a tenth of a percentage point, from 2.5 per cent to 2.6 per cent, reflecting the views of some Fed officials that the economy can support higher interest rates overall in the future. The latest projections show the median policymaker expects the Fed's benchmark overnight interest rate to fall three-quarters of a percentage point in 2025, less than the one percentage point projected in December as part of a slightly slowed rate cut path, and by three-quarters of a point in 2026 as well, the same as anticipated previously.
21 Mar 2024, 12:05 AM IST
US Fed Meet Live: Fed macro projections
Median forecast for PCE inflation, the Fed's preferred gauge, is unchanged at 2.4 per cent for 2024 while core PCE projection rises 0.2 percentage point to 2.6 per vent; economic-growth estimate for 2024 jumps to 2.1 per cent from 1.4 per cent. The US Fed maintains its pace of quantitative tightening, with a maximum of $60 billion of Treasuries and $35 billion of mortgage-backed securities rolling off the balance sheet each month.
20 Mar 2024, 11:53 PM IST
US Fed Meet Live: Fed projections imply 75 bp of rate cuts in 2024 from current level, additional 75 bp in 2025
Nine of the Fed's 19 policymakers see three quarter-point rate cuts this year, and nine see two or less. Only one penciled in more cuts than the median, compared with five in December. The new projections suggest policymakers are more inclined to keep rates higher for longer to make sure inflation does not stall out above their two per cent goal, or flare up again.
By the end of 2025, policymakers anticipate a policy rate of 3.9 per cent, according to the median of their projections, implying an additional three quarter-of-a-percentage-point cuts next year. In December the median policymaker wrote down an end-2025 rate of 3.6 per cent.
20 Mar 2024, 11:49 PM IST
US Fed Meet Live: US bond yields fall after Fed projects rate cuts for 2024
US Treasury yields fell after the Federal Reserve on Wednesday said they still anticipate cutting interest rates three times this year, according to the median of new economic projections.
Traders had speculated the Fed could reduce those projections to two cuts this year, following stickier than expected consumer and producer price inflation in January and February.
Benchmark 10-year yields were last at 4.267 per cent, down around three basis points on the day. Two-year yields dropped to 4.623 per cent, down about six basis points.
20 Mar 2024, 11:42 PM IST
US Fed Meet Live: FOMC signals that it will make 3 rate cuts in 2024
The Federal Reserve held interest rates steady on Wednesday, but policymakers indicated they still expect to reduce them by three-quarters of a percentage point by the end of 2024 despite stodgier expected progress towards the US central bank's two per cent inflation target.
The Fed's new policy statement described inflation as remaining "elevated," and updated quarterly economic projections showed the personal consumption expenditures price index excluding food and energy rising at a 2.6 per cent rate by the end of the year, compared to 2.4 per cent in the projections issued in December.
20 Mar 2024, 11:37 PM IST
US Fed Meet Live: Powell-led FOMC keeps key rates unchanged at 5.25-5.50% for 5th straight meeting
‘’In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,'' said US Fed Researve in its statement.
20 Mar 2024, 11:15 PM IST
US Fed Meet Live: Investors to eye timing of cuts
Wall Street analysts and investors worldwide will keenly eye the debate on the timing of interest rate cuts in the upcoming policy verdict. "We expect a fairly hawkish outcome," Barclays economists wrote in a recent investor note, predicting that policymakers on the Fed's rate-setting Federal Open Market Committee will roll back the number rate cuts from three to two.
20 Mar 2024, 11:00 PM IST
US Fed Meet Live: US stocks hold ground ahead of policy verdict
Wall Street's main stock indexes were little changed on Wednesday as investors awaited the conclusion of the Federal Reserve's meeting. Traders pulled back bets for a June rate cut to 64 per cent from 71 per cent at the start of last week, according to CME FedWatch data. At 11:32 a.m. ET, the Dow Jones Industrial Average was up 32.88 points, or 0.08 per cent, at 39,143.64, the S&P 500 was up 3.10 points, or 0.06 per cent, at 5,181.61, and the Nasdaq Composite was up 5.29 points, or 0.03 per cent, at 16,172.08.
20 Mar 2024, 10:45 PM IST
US Fed Meet Live: How was January's verdict different from December's ?
The FOMC used its first meeting of the year to reaffirm its long-term goals and monetary policy strategy, including its commitment to a two per cent average inflation target. Among other changes to the statement, the committee omitted language that had been included in some form since last March, calling the banking system “sound and resilient" and warning that tighter credit conditions were likely to weigh on the economy.
20 Mar 2024, 10:15 PM IST
US Fed Meet Live: There may be no US Fed rate cut in 2024 as inflation remains sticky: Analyst
The chances of a Fed rate cut in the calendar year 2024 (CY24) are getting dimmer because the US central bank is having a hard time reducing inflation. This could affect other central banks in emerging markets, including the Reserve Bank of India (RBI), according to Madhavi Arora, Lead Economist at Emkay Global Financial Services.
20 Mar 2024, 10:03 PM IST
US Fed Meet Live: Euro zone bond yields steady ahead of Fed verdict
Euro zone bond yields held steady on Wednesday as traders scrutinised comments from European Central Bank policymakers and awaited the conclusion of the Federal Reserve meeting later in the day. Germany's 10-year bond yield, the benchmark for the euro zone, was last down 1.5 basis points (bps) at 2.433 per cent.
Yields have been rising for the past week after US inflation data came in stronger than expected, causing investors to rein in their bets on Fed rate cuts, a continuation of the broad trajectory for much of 2024.
20 Mar 2024, 09:30 PM IST
US Fed Meet Live: Street estimates ahead of Fed decision
Abhishek Jain, Head of Research, Arihant Capital:
While no cut is anticipated, the market is keenly awaiting the outcome of the FOMC meeting and, more importantly, the language used by Fed Chair Jerome Powell in his press conference.
Analysts are particularly interested in any hints regarding future policy.
The key factors influencing the Fed's decision are twofold: inflation and future policy trajectory.
Inflation remains above the Fed's target of 2 per cent, with February's CPI data exceeding expectations at 3.2 per cent.
The market is looking for clues about the possibility of rate cuts starting in June, which would depend on the Fed's assessment of progress in controlling inflation.
20 Mar 2024, 09:15 PM IST
US Fed Meet Live: Oil rally cools off as traders await Fed decision
Oil cooled after a strong run of gains that carried crude into overbought territory, with traders turning their attention to an interest-rate decision by the Federal Reserve. West Texas Intermediate’s more-active May contract fell about two per cent to near $81 a barrel. Crude on Tuesday settled at its highest closing price since late October.
The pullback comes after crude prices were pushed into overbought territory and algorithms reached their maximum long positions. The US central bank is expected to hold rates steady for a fifth consecutive meeting later Wednesday
20 Mar 2024, 09:00 PM IST
US Fed Meet Live: What analysts say on Fed rate cuts
Deepak Jasani, Head of Retail Research at HDFC Securities:
The US Fed is widely expected to keep its key lending rate unchanged again on Wednesday, as policymakers continue dialogue over when to start rate cuts. The US is seeing a small uptick in the pace of monthly inflation and at the same time, the unemployment rate has remained low, wage growth has reduced, and economic growth for the final quarter of 2023 came in above expectations -- all indications that the US economy remains in good shape despite higher rates.
After two days of discussions, the US Fed will publish an updated summary of economic projections (SEP) alongside its rate decision on Wednesday, which will include policymakers' views of where they expect interest rates to be at the end of this year.
The March update published Wednesday is unlikely to show a significant shift, although there remains a chance that the policymakers could reduce the number of cuts to two (from the earlier three) they expect to see this year.
20 Mar 2024, 08:45 PM IST
US Fed Meet Live: Gold slips on stronger dollar; focus on Fed rate verdict
Gold prices drifted lower on Wednesday as the US dollar firmed, while traders awaited the US Federal Reserve's monetary policy decision and Fed Chair Jerome Powell's remarks for more clues on prospects of rate cuts. Spot gold dipped 0.2 per cent to $2,152.52 per ounce.
Gold has fallen 2 two per cent from a record high of $2,194.99 hit on March 8, as last week's hotter-than-expected US consumer prices index figures dashed hopes for early and sharp rate cuts, according to news agency Reuters.
20 Mar 2024, 08:15 PM IST
US Fed Meet Live: Investors to focus on dot plot
According to Bloomberg, investors will be focused on Fed officials’ forecasts for interest rates — the ‘dot plot’ — which will show how much the committee expects to ease in 2024 and 2025. The central bank is also scheduled to hold a discussion on its $7.5 trillion balance sheet, which it’s been shrinking by allowing some securities to mature without replacing them — a process known as quantitative tightening.
20 Mar 2024, 08:00 PM IST
US Fed Meet Live: Toronto stocks rise ahead of Fed rate decision
Canada's main stock index edged higher on Wednesday supported by rate-sensitive stocks ahead of the US Federal Reserve's rate decision due later in the day, while energy shares led sectoral losses tracking oil prices. "In our view, we see scope for the Fed to start cutting rates in June, however, the path of policy still remains very data dependent," said Henk Potts, market strategist at Barclays Private Bank. Rate-sensitive sectors such as consumer discretionary , technology and utilities rose between 0.4 per cent and 0.7 per cent.
20 Mar 2024, 07:30 PM IST
US Fed Meet Live: US bond yields subdued ahead of Fed's interest rate projections
US Treasury yields were little changed on Wednesday as investors waited on updated economic and interest rate projections at the conclusion of the Federal Reserve’s two-day meeting for clues on the path of monetary policy.
Traders will be watching to see if the central bank increase their growth and inflation expectations, or cut their projections for how many times they are likely to cut interest rates this year.
Stickier than expected consumer and producer price releases in January and February has raised concerns that it will take longer for the Fed to bring inflation closer to their two per cent target, and delay rate cuts. Analysts have noted that the data was likely impacted by seasonal factors and that it doesn’t necessarily mean that disinflation won’t continue on track.
20 Mar 2024, 07:15 PM IST
US Fed Meet Live: Wall Street set for lackluster open ahead of Fed decision
Wall Street was set for a lackluster open on Wednesday as investors awaited the conclusion of the US Federal Reserve's meeting where it is widely expected to keep interest rates unchanged and provide further cues on its monetary policy trajectory.
Wall Street rallied to all-time highs this month, supported by optimism around artificial intelligence, but it has retreated a little in recent weeks after reports showing robust inflation shook confidence in the Fed kicking off its rate-easing cycle soon, according to reports.
20 Mar 2024, 07:00 PM IST
US Fed Meet Live: US dollar trades higher ahead of Fed meeting
The US dollar rose for a fifth straight session on Wednesday, while stock and bond markets trod water as traders braced for the crucial Federal Reserve meeting scheduled later in the day. Japan's yen was at a four-month low a day after the Bank of Japan finally ditched its sub-zero rates, but the focus was already on whether the Fed signals two US rate cuts are now likely this year rather than the three cuts that markets had been hoping for.
20 Mar 2024, 06:45 PM IST
US Fed Meet Live: When and where to watch Fed chair Powell's press conference?
Follow the link below to watch Fed chair Powell live at 2:30 pm EST
20 Mar 2024, 06:15 PM IST
US Fed Meet Live: Powell to address press conference at 2:30 EST
After the rate decision is published, Fed chair Jerome Powell will take questions from reporters, with much of the attention likely to focus on the path of interest rate cuts. But, he is also likely to be asked about the Fed's balance sheet, as policymakers begin discussions about when to start slowing down the rate at which the US central bank sells off the assets it purchased during the COVID-19 pandemic to help support the then-ailing economy.
20 Mar 2024, 06:00 PM IST
US Fed Meet Live: Policy stance
In December 2023, the US central bank policymakers on the FOMC penciled in a median of three quarter percentage-point rate cuts this year, raising hopes in the financial markets that they could start as early as March.
But in the weeks that followed, Fed officials used public appearances to caution against moving too quickly and reigniting inflation, stressing that any decisions on rate cuts would be “data-dependent." As a result, market expectations among traders, and many analysts, was pushed back from March to June, or even later.
"We continue to expect the FOMC to leave the Fed funds rate unchanged at the March meeting and to begin the easing cycle in June," wrote economists at Goldman Sachs in a recent note to clients.
20 Mar 2024, 05:45 PM IST
US Fed Meet Live: US inflation print
The US Consumer Price Index (CPI) for February rose 3.2 per cent year-on-year. This was slightly over the market expectations of 3.1 per cent. For the second consecutive month, inflation has surpassed expectations. With inflation persistently exceeding the Fed's two per cent target, analysts and investors keenly wait to observe how the central bank assesses the trajectory of price increases.
20 Mar 2024, 05:15 PM IST
US Fed Meet Live: Analysts, investors eye inflation commentary
"Regardless of the evolution in the 2024 dots, Powell is likely to emphasize that inflation data will be a critical determinant of the policy path ahead," said the Deutsche Bank economists.
"Recent data suggest the path back to two per cent may not be entirely smooth, and the Fed will need to see softer prints in the coming months to gain sufficient confidence on inflation," they added.
Analysts refer to Fed policymakers' remarks as "hawkish" when they voice support for keeping monetary policy tight, and "dovish" when they voice support for loosening policy, such as through interest rate cuts.
20 Mar 2024, 05:00 PM IST
US Fed Meet Live: Market analysts expect policy to align with macro data
Most analysts predict that the Federal Reserve will align its monetary policy with macroeconomic data, suggesting that the central bank may not provide a clear timeline for rate cuts. However, there is widespread anticipation that rate cuts could begin as early as June.
‘’All eyes are on the US Fed’s commentary late today and Existing home sales data to be released on Thursday. Markets are expected to remain in consolidation mode due to several events and would keenly track on the US Fed commentary which would provide direction on its future rate action,'' said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
20 Mar 2024, 04:36 PM IST
US Fed Meet Live: Powell-led FOMC likely to keep rates steady, debate timing of cuts
The US Federal Reserve will announce its second policy decision for 2024 on March 20. The US central bank has lifted its key lending rate to a 23-year high of between 5.25 and 5.50 per cent as part of a long-running battle to bring high inflation back down firmly to its long-term target of two per cent.
{{^adFree}}