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The meeting wraps up Wednesday afternoon, with the release of the Fed's rate decision coming at 2 p.m. "I hope they cut 50 basis points, but I suspect they'll cut 25. Here's a breakdown of what's on tap:The rate waitThe FOMC has been holding its benchmark fed funds rate in a range between 5.25%-5.5% since it last hiked in July 2023. The 'dot plot'Perhaps just as important as the rate cut will be the signals meeting participants send about where they expect rates to go from here. In June, FOMC members penciled in just one rate cut through the end of the year.
Persons: Jerome Powell, William McChesney Martin Jr, Andrew Harnik, they'll, Mark Zandi, that's, Tom Simons, Zandi, Robert Kaplan, There'll, Seema Shah, FOMC, Moody's, Goldman Sachs, Powell presser, Goldman, Simons Organizations: Federal Reserve, Committee, Moody's, Wall, Jefferies, Dallas Fed, CNBC, Asset Management Locations: Washington , DC
But at $93.52 a barrel, prices remain up 30% in three months as Saudi Arabia and Russia reduce output. Benchmark 10-year Treasury yields had hit their highest since 2007 at 4.371% overnight and were last at 4.36%. The yen is down 11% on the dollar this year as expectations firm for U.S. rates to stay high and Japanese rates to stay low. The yen hit a 10-month trough of 147.95 to the dollar late last week and it traded at 147.85 on Wednesday. Rising yields have kept a lid on gold prices, with spot gold last trading at $1,929 an ounce.
Persons: Brent, Stocks, Jerome, Sam Rines, Powell presser, Masato Kanda, Eugene Low, Miral Fahmy, Jamie Freed Organizations: Federal Reserve, Brent, FTSE, Japan's Nikkei, Bank of, New Zealand, Thomson Locations: SINGAPORE, Asia, Saudi Arabia, Russia, Pacific, Japan, Hong Kong, China, Texas, Sweden, Switzerland, Norway, Britain, U.S, Singapore, Australia, Argentina
Higher energy costs led to a bigger-than-expected spike in Canadian inflation, overnight data showed, lifting the loonie and triggering selling in the Treasury market. Benchmark 10-year Treasury yields hit their highest since 2007 at 4.371% overnight and were last at 4.36%. The Fed meeting leads a week jammed with central bank meetings and data over the next few days. British inflation figures are due on Wednesday, followed by central bank meetings in Sweden, Switzerland, Norway, Britain and Japan on Thursday. Rising yields have kept a lid on gold prices, with spot gold last trading at $1,929 an ounce.
Persons: Brent, presser, Jerome Powell's, Sam Rines, Powell presser, Masato Kanda, Kristina Clifton, Miral Organizations: Treasury, Federal Reserve, Brent, Nikkei, U.S, STERLING, OF CPI, Bank of, New Zealand, Commonwealth Bank of Australia, Bank of England, Thomson Locations: presser China, SINGAPORE, Saudi Arabia, Russia, Asia, Pacific, Japan, Texas, Sweden, Switzerland, Norway, Britain, U.S, China, Australia, Argentina
Here's everything the Fed is expected to do Wednesday
  + stars: | 2023-02-01 | by ( Jeff Cox | ) www.cnbc.com   time to read: +4 min
Federal Reserve Board Chairman Jerome Powell holds a news conference following the announcement that the Federal Reserve raised interest rates by half a percentage point, at the Federal Reserve Building in Washington, U.S., December 14, 2022. Evelyn Hockstein | ReutersThis week's Federal Reserve meeting will be remembered more for what policymakers say than what they do. Fed projections released in December indicate no cuts this year and continued rate hikes. That will take the fed funds rate to a target range of 4.5%-4.75%, the highest since October 2007. Though some Fed officials, such as St. Louis Fed President James Bullard, have suggested the rate hike could be half a point, there's virtually no chance of that happening.
U.S. Federal Reserve Board Chairman Jerome Powell holds a news conference after Federal Reserve raised its target interest rate by three-quarters of a percentage point in Washington, September 21, 2022. Kevin Lamarque | ReutersCall it a sign of the times where a half percentage point interest rate increase from the Federal Reserve is considered looser monetary policy. In 2022, they've done it five times — four times for three-quarters of a point and once for a half percentage point — with Wednesday's widely anticipated 0.5 percentage point move to be the sixth. Wednesday's meeting of the rate-setting Federal Open Market Committee will bring an assortment of moves to chew on. The 'dot plot' and the 'terminal rate'That "terminal rate" of which Masotti spoke references the expected end point for the Fed and its current rate-hiking cycle.
Here's everything the Federal Reserve is expected to do today
  + stars: | 2022-09-21 | by ( Jeff Cox | ) www.cnbc.com   time to read: +6 min
Construction workers outside the Marriner S. Eccles Federal Reserve Building, photographed on Wednesday, July 27, 2022 in Washington, DC. Kent Nishimura | Los Angeles Times | Getty ImagesThere's not a lot of mystery surrounding Wednesday's Federal Reserve meeting, with markets widely expecting the central bank to approve its third consecutive three-quarter point interest rate hike. That's the highest the fed funds rate has been since early 2008. Economic outlook: Part of this week's meeting will see Fed officials issue a quarterly update of their interest rate and economic outlook. Powell presser: Fed Chairman Jerome Powell will hold his usual news conference following the conclusion of the two-day meeting.
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