The Federal Reserve’s (Fed) Federal Open Market Committee (FOMC) is widely expected to keep rates unchanged on Wednesday, with Chairman Jerome Powell likely providing a policy message similar to that in May, TD Securities analysts write. in a note.
The US dollar will remain strong
“The base case is for the president to be somewhat optimistic given recent data developments, especially if the May CPI report shows further progress in inflation. We also expect the dot plot to show two cuts as the 2024 median “
“Treasuries will react to the dot chart and Powell’s possible dovish tilt with a modest bullish steepening. However, range trading is likely to continue given the continued ‘data-dependence’ outlook.”
“The US Dollar (USD) is expected to remain strong amid relative rate divergence and a narrowing window for FX volatility to remain suppressed.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
