The Federal Reserve is expected to keep the Fed funds rate unc | ForexAmg

The Federal Reserve is expected to keep the Fed funds rate unchanged at a 23-year high of 5.25%-5.5% for a fourth consecutive meeting today, but the focus will be on any indications regarding the timing and pace of interest rate reductions in 2024. At the very least, it is anticipated that the central bank's policy statement will no longer retain its "tightening bias," which previously indicated a higher likelihood of an increase rather than a cut. This shift is largely attributed to the consensus among almost all Federal Reserve officials, who have expressed the belief that there is no necessity for further rate hikes. Meanwhile, the CME Fed watch tool points to a 44.7% chance of a 0.25 bps rate cut in March compared to 73% a month ago as recent data showed inflationary pressures are under control but the US economy and job market remain strong.