US Fed key meet: All eyes on Jerome Powell's comments amid 2024 rate cut expectations
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The US Federal Reserve will announce its monetary policy decision on Wednesday, January 31. Chair Jerome Powell will provide updates on the outlook of the Central bank. While the Federal Reserve forecasts three rate cuts in 2024, some Wall Street economists predict up to five cuts this year. The Fed's decision on rate increase will be announced by Jerome Powell in a press conference at 2.30 pm ET. Powell's news conference could provide hints on when to lower interest rates. The Fed is expected to hold rates constant on Wednesday and drop rates for the first time in March. Approximately 50% of economists predict the Fed will make its first 2024 cut at its March 19-20 meeting. The first 2024 inflation report will be announced on February 13. Over 27% of Americans believe the economy is good or excellent, but roughly 45% rank the economy as poor. The outcome of the Federal Reserve's policy meeting will impact gold prices and consumer spending. Some experts believe the timing and extent of interest rate decreases may have a political impact. Gold prices rose to a two-week high on Tuesday. Consumer confidence increased for the third consecutive month in January, reaching its highest level in two years. Consumer spending remained high in December. The Fed's decision will have a big impact on the direction of gold prices. The Fed has repeatedly raised the interest rate to control inflation, but inflation has slowed in recent months. The Fed's target inflation rate is 2%. The Fed may seek to "douse hopes of any early easing in policy" due to uncertainty about inflation. The Fed is not in a rush to cut rates. The timing and extent of interest rate decreases may have a political impact. Some experts believe that lower borrowing prices may impact US President Joe Biden's effort for a second term. The Fed's decision will impact the direction of gold prices. If the Fed maintains its hawkish stance, the adverse trend in gold prices may continue. Consumer confidence increased for the third consecutive month in January. Consumer spending remained high in December. The Fed's decision will impact consumer spending.
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