Currently, the Federal Reserve’s benchmark interest rate is set between 5.25% and 5.5%. Despite this, investors are anticipating a greater than 50% chance of a rate cut by March. They also expect the central bank’s benchmark rate to fall to around 4% by the end of 2024.
During her meetings, Yellen emphasized the independence of the Federal Reserve in its decision-making processes. This statement comes at a time when traders are speculating about future monetary policy moves and their potential impact on markets.
The Treasury Secretary’s comments highlight the delicate balance policymakers must maintain while navigating through market expectations and the actual fiscal decisions made by the Federal Reserve. As investors look ahead, they remain attentive to signals from economic leaders like Yellen for insights into future rate movements.
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Source: Economy - investing.com
