Today, at 10 pm Amman time, the US Federal Reserve will announce its decision on interest rates, and expectations indicate an increase of about 50 basis points, after raising interest rates by 75 basis points in each of the previous four meetings, so the interest rate for the central bank is now in the range of 4%, and the interest announcement will follow the Federal Reserve Chairman’s press conference and will have an impact on the market movement due to discussing the following fundamental matters:
- How will the cycle of increases be in the upcoming meetings, especially since the Fed has not yet shown any signs of stopping interest rate increases soon.
- What is the final interest rate from the Fed's point of view is necessary to reduce inflation, especially since there are previous hints that it will be higher than previous expectations.
The press conference will be so important, in which we will watch whether the Fed will be decisive and end the debate about the final interest rates, or at least know when the cycle of raising interest rates may be coming to an end.
So it will be difficult to build expectations for price movement coinciding with the announcement of interest rates as well as during the press conference, because that depends on the terminology that the Federal Reserve Chairman will use in the press conference, but what is expected is that the Federal Reserve Chairman will leave the door open to all expected possibilities, Especially since inflation despite its continued slowdown, is still at high levels.
Therefore, today we expect new fluctuations in prices, ups, and downs, and it will take some time before it starts to stabilize and takes a specific path, so we must note and remember the golden rule: markets have different ideas and convictions in the way they interpret the information issued, and therefore prices cannot move 100% according to that information.
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