After ten straight increases that increased borrowing costs by 500 basis points, The Federal Reserve is expected to maintain its target range for the fed funds rate at 5%-5.25% in June 2023. This would be the first pause in the tightening campaign as policymakers evaluate the effects of the aggressive drive on the economy. Last month, the core inflation rate decreased slightly, to 5.3%, although the headline rate still remained far above than the Fed’s 2% target. Investors will also closely monitor updated economic forecasts and the so-called “dot plot” for any additional information on the Fed’s upcoming moves, particularly if the central bank will continue raising interest rates later this year. Traders presently anticipate this increase to be at least one more quarter-point. During its May meeting, the Fed increased the fed funds rate by 25 basis points to a range of 5%-5.25%.
Which was the 10th increase and the highest level since September 2007. Federal Reserve as a source
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Meaning expect huge moves on: EUR/USD, GOLD, S&P500, NASDAQ, BTC, pretty much everything!
Don’t miss out! Here is the economic calendar showing when everything is kicking off.