DOWNLOAD
Policy Rate Updates: Fed policy rates remain steady
Metrobank Research continue to see decent demand for fixed income and dollar corporate credit, particularly long-term bonds.
By Metrobank Research
The Federal Open Market Committee (FOMC) meeting yesterday, March 20, matched market expectations as the US Federal Reserve maintained the Federal Funds Target Rate (FFR) at 5.25% – 5.50%. This was the fifth consecutive meeting that the FOMC decided to hold policy rates steady, following a string of 11 rate hikes, including four in 2023.
Despite the uptick in US inflation and an increase in the US unemployment rate, Fed Chair Powell recognizes the progress on easing price pressures and continued labor market tightness.
Policy Rate Updates: Fed policy rates remain steady
Although markets have pared expectations on the likelihood of a rate cut in June to 73% from pricing-in a 97% probability after the January FOMC meeting, Metrobank Research maintains its view that the Fed will likely start cutting rates as early as the second quarter, easing by up to a total of 100 bps through to end-2024.
Download