What Are Market Expectations Regarding the Fed's Interest Rate Decision?

The Much-Awaited Fed Interest Rate Decision Will Be Announced Today

The Federal Reserve (Fed) will announce its interest rate decision, which the finance world is closely watching, at 22:00 Turkey time today. After the publication of this critical decision text, Fed Chairman Jerome Powell is expected to hold a press conference at 22:30. It is anticipated that the Federal Open Market Committee (FOMC) will keep the policy rate unchanged in the range of %3.5 to %3.75.

Investors' Focus: Powell's Messages

While the markets are almost certain that the interest rate decision will remain unchanged, investors plan to specifically focus on the clues they can gather from Powell's statements. Although expectations for an interest rate cut are nearly nonexistent, there are notable differences of opinion regarding the policies to be implemented in the remainder of the year on Wall Street. In this context, investors will be curious about Powell's implications and his comments on future policy messages.

Macquarie's Surprise Interest Rate Hike Prediction

Contrary to market expectations, Macquarie's North American economists David Doyle and Chinara Azizova predict that the Fed will implement a surprise interest rate hike in the last quarter of the year. The economists argue that improvements in the labor market and the decline in unemployment rates indicate that the Fed needs to adopt a more aggressive policy. The strong performance of the American economy and high inflation,