The Federal Reserve Meets Wednesday. Here's What to Watch.

[mahatmakanejeeves]

The Federal Reserve Meets Wednesday. Here’s What to Watch.

Officials are likely to keep interest rates unchanged at the conclusion of their January meeting. Here’s a look at what might come next.

By Jeanna Smialek
Jan. 31, 2024, 5:02 a.m. ET

Federal Reserve officials will conclude their two-day meeting on Wednesday, and they are widely expected to keep interest rates steady at a two-decade high when they release their policy decision at 2 p.m.

But investors are likely to closely watch the meeting — particularly Chair Jerome H. Powell’s 2:30 p.m. news conference — for hints of when policymakers might begin to lower interest rates. The Fed has held its policy rate in a range of 5.25 to 5.5 percent since July, and officials projected in December that they might lower borrowing costs by three-quarters of a percentage point over the course of 2024.

But both the timing and the magnitude of those rate cuts remain uncertain. On the one hand, inflation has come down more swiftly than many economists had expected in recent months. On the other, economic growth is proving stronger than anticipated, which could give companies the wherewithal to keep raising prices into the future.

Here’s what to know about this meeting.

{snip}

The Fed is set to retire its tightening bias at its policy meeting this week.

Officials have a first-class problem—inflation fell faster than they expected—but it poses a conundrum nevertheless: How soon and fast do you dial back restrictive policy?

Link to tweet

[bucolic_frolic]

1. i am always unaware of Fed meetings, the most important hour of the month

Should be promulgated more promulgatively.

[mahatmakanejeeves]

2. I promulgulously promulgulate economic events every week.

Mon Jan 29, 2024: This week's major U.S. economic reports (January 29 -- February 2)

It's based on the MarketWatch economic calendar.

This Week's Major U.S. Economic Reports & Fed Speakers

[bucolic_frolic]

3. I'm gonna start keeping a yearly calendar. On the back of envelopes so I won't miss it.