Credit Mutuel Asset Management strategist Francois Rimeu highlighted that the Federal Reserve’s upcoming meeting will primarily focus on updating its economic forecasts and the widely monitored dot plot. The report emphasizes that despite recent economic surprises and a softening labor market, growth is expected to decelerate while inflation remains more persistent than initially projected. This evolving landscape underscores the Fed’s cautious approach amid ongoing stagflation risks and elevated uncertainty.
Given these dynamics, the Federal Reserve is anticipated to maintain its current policy stance, refraining from implementing any immediate rate cuts. The strategist notes that without compelling hard data signaling a need for policy easing, the central bank will likely hold its benchmark interest rate steady. This outlook aligns with prevailing market expectations, reinforcing a prudent monetary policy trajectory in the near term.