Stubborn inflation likely to prompt Fed to maintain interest rates – Emirates NBD

Stubborn inflation likely to prompt Fed to maintain interest rates – Emirates NBD

Mubasher: The Federal Reserve (Fed) is expected to maintain interest rates at 5.50% during its upcoming two-day monetary policy meeting, concluding on 20 March. This expectation is supported by higher-than-expected inflation data and signs of improvement in the labour market, which could potentially lead to increased inflation, according to a report by Emirates NBD Research. Furthermore, comments from Fed officials, including Chairman Jerome Powell, suggest a firm commitment to ensuring that inflation trends downward before considering any interest rate cuts, the report stated. However, the report also anticipates three 0.25% rate cuts in 2024, with the first expected to occur during the June meeting of the Federal Open Market Committee (FOMC).

Stubborn inflation likely to prompt Fed to maintain interest rates – Emirates NBD