FOMC Meeting: Experts believe that there are signs of slowing down in the US economy. However, the concern of economic slowdown has subsided a bit.
FOMC Meeting: The July policy meeting of the US Central Bank Federal Reserve (US FED) will start from today (July 25). The meeting will last for 2 days. After this, commentary will come on interest rates, inflation and other economic matters.
However, more experts believe that in July the FED can increase the interest rates by a quarter. Apart from this, the steps taken regarding the economic slowdown will also be monitored.
Softening Of Inflation Data:
Central banks around the world continuously increased interest rates to control inflation after the pandemic. The reason for this is the Russia-Ukraine war, due to which there was a problem of supply and inflation broke all records.
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However, now there is a softening in the inflation figures. The inflation rate in America has come down from a height of 9.1% to 3%. However, the target of the FED is to bring the inflation rate down to 2%.
The Risk of Economic slowdown has Reduced:
Experts believe that there are signs of slowing down in the US economy. However, the concern of economic slowdown has subsided a bit. Because the situation is getting support from the job market and retail buying.
This has reduced the risk of slowdown. Due to this, there is little indication of further increase in interest rates in 2023. Also, the possibility of rate cut is very less this year.
Action in dollar-bond yields ahead of FED decision
Strong action is being seen in the Dollar Index and 10-year Bond Yield on the expectation of a ban on the increase in interest rates. Its effect is visible on the bullion market including the equity market. Let us inform that apart from US FED, ECB and BoJ also have policy this week.