📣 The Fed meeting will be announced today at 21.00.📣

🟢 What are the market expectations?

A great volatility can be observed in the markets before and after the Fed meetings. For this reason, investors and analysts closely follow the expectations regarding the Fed's interest rate decision. Additionally, the dollar index and gold prices are also affected by the Fed's interest rate decision. Of course, cryptocurrency prices too.

🟢 According to FedWatch, it is almost certain that the Fed will keep the policy rate constant at 5.25-5.50% at the meeting to be held on May 1.

🟢 When will the interest rate reduction start?

All eyes are on the date when the Fed will start reducing interest rates. Although Fed Chairman Powell excited investors with his dovish statements after the decision at the last meeting held on March 20, the recently announced inflation data in the USA pointed out that the cooling in the rate of increase of prices had stopped and caused the expectation outlook for the Fed to deteriorate.

🟢 Due to inflation that continues to remain sticky, it is observed that the Fed's interest rate reduction, which was expected to be made three times in 2024, has decreased to two times. In his recent speeches, Fed Chairman Powell stated that policy rates should remain tight for a while in order for the disinflation process to continue.

🟢 The US 1Q GDP data, which was well below expectations, also caused the expectations regarding the Fed to deteriorate. The possibility that the Fed will cut interest rates once a year has also begun to price in the money markets.

🟢 According to FedWatch, the Fed may loosen its tight monetary policy at its September meeting. 43.8% of economists predict that the Fed will start its first monetary easing move with a 25 basis point cut. On the other hand, 42.4% expect interest rates to remain constant.

⚠️Statements after the Fed Interest Rate Decision are Important⚠️

Fed Chairman Powell's verbal guidance is as important for asset pricing as the Fed's interest rate decision.