The Federal Reserve is expected to maintain the benchmark federal funds rate at around 5.3% during their meeting due to higher-than-expected inflation in the first quarter. Rate cuts are likely to be postponed, and officials may stress their willingness to keep rates at a level that significantly restrains economic activity for a longer period. Fed Chair Jerome Powell is anticipated to discuss the recent inflation setback and its effect on the interest-rate outlook, with the possibility of either a "bumpier" path to 2% inflation or inflation settling near 3%, which could eliminate the possibility of rate cuts.
Category
🗞
NewsTranscript
00:00It's Benzinga and here's what's on the block.
00:02The Federal Reserve is expected to maintain the benchmark federal funds rate at around 5.3%
00:07during their upcoming meeting due to higher than expected inflation in the first quarter.
00:11Rate cuts are likely to be postponed, and officials may stress their willingness to
00:15keep rates at a level that significantly restrains economic activity for a longer period.
00:19Fed Chair Jerome Powell is anticipated to discuss the recent inflation setback
00:23and its effect on the interest rate outlook with the possibility of either a bumpier path to 2%
00:28inflation or inflation settling near 3% which could eliminate the possibility of rate cuts.
00:33A hawkish pivot toward rate increases is considered unlikely at this point.