U.S. Federal Reserve Monetary Policy Preview: Reliance Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Reliance Securities Report.There are two possible scenarios and the impact from the Federal Open Market Committee meeting outcome will depend on what the central bank broadcasts. Scenario 1 (Most likely – Pause)We expect the FOMC will opt to maintain key interest rates at current levels at the conclusion of its upcoming meeting on July 31. However, traders are now 100% certain the Federal Reserve will cut interest rates by September and there are 6.7% odds that the rate will be a half percentage point lower in September.Additionally, traders also see a 60% chance of a 25 to 50-basis points cut in December. However, such a move would likely be spurred only if labour market conditions, were seen deteriorating. While the unemployment rate remains relatively low at 4.1%, it has now edged higher in each of the last three months.It’s up from a low of 3.4% in early 2023, raising some concerns about recession risk. The July jobs report will be released next week after the Fed meeting.So, in this meeting the language in the statement and press conference will be the key drivers.Additionally, inflation which has eased still remains sticky and against inflation has been slow since mid-2023, which could prompt the Fed to say that an early rate cut could backfire and cause inflation to reignite.. Scenario 2 (Unlikely – More than three rate cut projections)It is very unlikely that the Fed could project three rate cuts in 2024.If indeed they mention three or more rate cuts, it will be bearish for the Dollar Index..Click on the attachment to read the full report:.Akums Drugs And Pharma IPO - Investment Rationale, Issue Details, Financials, Risks And More: IDBI Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

U.S. Federal Reserve Monetary Policy Preview: Reliance Securities

The brokerage expects the FOMC will opt to maintain key interest rates at current levels at the conclusion of its upcoming meeting on July 31.

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U.S. Federal Reserve Monetary Policy Preview: Reliance Securities

The brokerage expects the FOMC will opt to maintain key interest rates at current levels at the conclusion of its upcoming meeting on July 31.

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