Previous Trading Days Events 20.03.2024

The Federal Reserve Chair Jerome Powell said yesterday that recent high inflation readings had not changed much the narrative of easing and the central bank stayed on track for three interest rate cuts this year.

The Fed left interest rates unchanged and released new quarterly economic projections that showed officials now expect the economy to grow 2.1 this year.

At the same time, the unemployment rate is only expected to hit 4 by the end of 2024, barely changed from the current 3.9 level, while a key measure of inflation is projected to keep falling, though at a somewhat slower pace, to end the year at 2.6.

The Fed officials held onto their outlook for three cuts in borrowing costs this year. Powell said the timing of those reductions still depends on officials becoming more secure that inflation will continue to decline towards the Feds 2 target even as the economy continues to outperform expectations.

Its appropriate for us to be careful, the Fed chief said, reiterating a goslow approach to rate cuts that has been buttressed by the economys ongoing strength, with officials saying they are in no rush to ease monetary policy while the economy and the job market continue to grow.

Source httpswww.reuters.commarketsratesbondsfedsratecutconfidencelikelyshakennotyetbrokenbyinflation20240320

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