The Federal Reserve kept interest rates unchanged, and the first rate cut may come in September.
The U.S. Federal Reserve's interest rate decision (upper limit) as of May 1 is 5.5%, expected to be 5.50%, and the previous value is 5.50%. The Federal Reserve has kept the benchmark interest rate unchanged in the range of 5.25%-5.50% for the sixth consecutive time, in line with market expectations.
Matthais Scheiber, an analyst at asset management company Allspring, said that as expected, the FOMC decided to keep interest rates unchanged. We believe that the Fed will not cut interest rates until we see weaker price and labor market data, and it seems unlikely that a rate cut will be made before the fall. Traders see September as a possible time point for the Fed to cut interest rates for the first time, with a probability of about 62%.
Federal Reserve Chairman Powell said that the Fed will only cut interest rates if there are considerable problems in the labor market. In terms of labor market problems, the problems "must be significant" to change the policy outlook. Powell believes that the unemployment rate (currently 3.8%) must rise by more than 0.2 percentage points before the central bank will shift its attention away from inflation. Powell said in the latest press conference today, "It has to be meaningful and get our attention, so that we think that the labor market is indeed weakening significantly, and we will respond to it. A two-tenths increase in the unemployment rate may not attract our attention. Fed Chairman Powell reiterated that political considerations surrounding the upcoming presidential election will not affect the Fed's interest rate decision. He said that we are calm about the election and we know that we will do what we think is right. Judging from the Fed's meeting minutes, there is no evidence that officials allow politics to influence their policy choices.
Finally, my cousin's opinion is that interest rate cuts are certain, but there are still a few months before September, so my cousin believes that there will not be much market in the past two months, that is, shocks are the main ones. Of course, there are many currencies that can be laid out in the spot market in the past two months. For contracts, it is still the free strategy of one order per day laid out by the fan group, just play the band.
Finally, I wish everyone can get rich in the currency circle.