David Kelly, chief global strategist at JP Morgan, shared his perspective on the situation. He noted that despite the ongoing rise of oil prices in early September, their impact on the Consumer Price Index (CPI) should be limited. “We think that, barring a new shock, annual headline consumption deflator inflation will remain below the FED’s 2% target in the fourth quarter of 2024,” Kelly stated.
The Federal Reserve is set to announce its short-term interest rate forecasts for the end of 2023 on September 20. Given that there are only two meetings remaining after September, these gatherings will provide substantial indications about any potential interest rate movements in November.
In June’s release of its projections, many anticipated that interest rates would rise one notch above their current level in 2023. This view was largely supported by the minutes from the FED’s July meeting. However, economic data since then have indicated some signs of moderating inflation and slowing employment growth.
The upcoming September 20 announcement is also being closely watched by Bitcoin and cryptocurrency investors due to its potential significant impact on the industry.
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Source: Economy - investing.com
