The U.S. Federal Reserve is widely expected to leave interest rates unchanged at the conclusion of its latest policy meeting later today (Jan. 28).
Financial markets are betting 97% that the U.S. central bank leaves interest rates at current levels following its two-day meeting.
Analysts say the Fed is likely to be patient as a series of rate cuts made late last year work their way through the U.S. economy.
That said, markets will be closely watching the comments of Fed Chair Jerome Powell at his post-meeting news conference for any hints as to the future direction of interest rates.
Markets are currently pricing in two interest rate cuts this year, with the first one not expected until June.
The Federal Funds rate is currently set at 3.50% to 3.75%.
Beyond the interest rate decision, U.S. President Donald Trump is expected to soon announce his candidate to succeed Powell as Fed Chair when his term expires this May.
Rick Rieder, a senior executive at asset manager BlackRock (BLK), is the frontrunner to become the next Fed Chair, though no announcement has yet been made.
Also likely to come up at Powell’s news conference is The U.S. Justice Department’s criminal investigation into the Fed Chair.
The investigation comes as Trump pressures the central bank to further lower interest rates and boost the U.S. economy. It is widely viewed as having little or no merit.
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