Last Minutes Remaining – FED to Announce Interest Rate Decision, Here Are Expert Expectations and Predicted Date for First Rate Cut

Investors have begun to scale back their expectations for a rate cut after the latest employment data exceeded expectations. LPL Financial Chief Economist Jeffrey Roach said in an assessment he made on the Yahoo Finance program Morning Brief that this week’s meeting will most likely be “boring.” Roach said that Fed officials will prepare markets for the first rate cut in June with domestic and international speeches they will make during this process. Roach said he expects three interest rate cuts during the year, adding that these could be quarter-point cuts in June, October and December, respectively. He noted that there are positive signals, especially in non-housing services inflation, which is called “super core.” Roach also made assessments of employment data, stating that the latest figures do not fully reflect the truth and that some temporary hirings (such as in the warehousing sector) make the picture look stronger than it is. He also pointed out that the data could be misleading because federal employees are still on the payroll due to severance pay or early retirement. However, Roach said that the persistent demand for labor in the health sector provides stability to the labor market, and that the general trend is a slowdown in employment growth over the last year and a half but still positive. He added that as long as the average employment growth remains above 125,000, the message of stability will continue to be given to the markets. Roach said that businesses tend to hold on to their current employees because of the difficulties they face in finding qualified workers, and that this could limit layoffs. However, he also noted that wage increases could slow down. Noting that there has been a rapid increase in the number of people unemployed for a long time, Roach added that this rate has reached pre-pandemic levels but does not yet show signs of recession. For this reason, he stated that the markets reacted positively to the employment data announced last Friday. According to Roach’s assessment, the Fed will not change interest rates this week, but will begin to lay the groundwork for a possible cut in June. *This is not investment advice. Source: https://en.bitcoinsistemi.com/last-minutes-remaining-fed-to-announce-interest-rate-decision-here-are-expert-expectations-and-predicted-date-for-first-rate-cut/