May 4, 2024

Taylor Daily Press

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What can we expect from the European Central Bank and the Federal Reserve next week?

What can we expect from the European Central Bank and the Federal Reserve next week?

An exciting week awaits investors. Central bankers meet in both the United States and the Eurozone. The Federal Reserve is expected to pause interest rates, while the European Central Bank (ECB) will raise interest rates again by 25 basis points.

Why is this important?

Central banks started raising interest rates last year in order to bring down high inflation. Little by little, this policy began to bear fruit. However, inflation rates are still above the targets of the monetary institutions. Both the European Central Bank and the Federal Reserve aim for an inflation rate of 2 percent.

US Monetary Policy Outlook: Federal Reserve Chairman Jerome Powell and his colleagues met on June 13-14.

  • FedWatch CME It shows that 70 per cent of the market is dependent on a rate pause and 30 per cent on a 25 basis point hike on June 14.
  • The question is: Will the Fed surprise investors? Various economic indicators are already pressuring the US central bank to continue raising interest rates.

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