Federal Reserve preview: Deutsche Bank says Fed to signal a March rate cut is unlikely

While the Federal Reserve’s policy meeting would typically be the main event of the week, Deutsche Bank economists anticipate a relatively uneventful outcome, with no rate change and limited forward guidance.

According to their preview, Fed Chair Jerome Powell may avoid explicitly ruling out a rate cut in March, as he did last January. However, the overall messaging from the meeting is expected to reinforce that such a move remains unlikely. Powell is likely to highlight the economy’s resilience and signs of stabilization in the labor market, suggesting the Fed will exercise patience before easing policy further.

Announcement due at 1900 GMT

1400 US Eastern time

Federal Reserve Chair Powell’s press conference follows a half hour later

This article was written by Eamonn Sheridan at www.forexlive.com.