Bulgarian time today at 21:00, the Federal Open Market Committee (FOMC) meeting minutes from November 12 to XNUMX will be released. This information will provide insight into whether Federal Reserve officials have adopted a more dovish or hawkish stance in recent months. With inflation rates showing signs of slowing but remaining resilient, these minutes will be crucial for global investors assessing future Fed policies.
In May 2024, the annual inflation rate in the USA decreased to 3.3% from 3.4% in April. The Consumer Price Index (CPI) held steady from the previous month, while core inflation, excluding volatile items, decreased to 3.4% annually and 0.2% monthly, both slightly better than expected.
Despite a significant decrease from its peak of 9.1% in June 2022 to 3.4% in May 2024, inflation continues to concern the Federal Reserve. Over the past six to eight months, the average Consumer Price Index has been around 3.2%. The Fed has made it clear that it will not consider rate cuts until CPI reaches 2%, with the federal funds rate remaining at a 23-year high since July 2022.
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At the European Central Bank Forum in Sintra, Portugal, Federal Reserve Chairman Jerome Powell indicated a slightly more favorable outlook. According to Michael Brown, Senior Strategist at Pepperstone, Powell acknowledged progress toward achieving the 2% inflation target and noted the disinflationary trend as indicated by recent CPI and PCE reports.
Jose Torres, Senior Economist at Interactive Brokers, emphasized Powell’s cautious stance regarding the potential for a recession. He highlighted Powell’s focus on balancing restrictive monetary policies to prevent a resurgence of inflation while avoiding economic downturn.
