BlockBeats News, March 18th, Daniel Lavni, Head of Fixed Income at Mediolanum International Fund Management, stated that the market had anticipated the Fed to hold rates steady at this week’s meeting even before the escalation of the Gulf situation, and now it has become a certainty.
Recent economic data has shown continued inflation deceleration and a deteriorating labor market. The institution originally expected this hold-steady stance to be dovish. However, this is no longer the case.
It is expected that the Fed will convey a cautious and observant attitude. The policy statement is likely to mention the risk of war and introduce more balanced wording regarding the future rate path, emphasizing both the upward risk of inflation and the downward risk of the labor market. (FX678)
