Federal Open Market Committee ends next meeting today.
Report informs that the interest rate will be reconsidered at the last day of the meeting. The regulator had made a decision to keep the interest rate at 2.25-2.5% on May 1.
Fed chair Jerome Powel had stated that the regulator would not raise the interest rate in 2019 and 2021 and will only raise it in 2020. However, in early June, Fed chair hinted at possible reduction in the interest rates. The statements were made on the background of challenges by the US Administration on reduction of interest rates, saying that the current level causes delay in economic growth.
Report’s analytical group believes that the Fed won’t make any change in the interest rate in June. However, it does not mean that the Fed will not reduce interest rate at the next meeting either. Because US is to soften monetary policy in amid crisis with China and weakening inflation. Only reduction in the interest rate can help US avoid recession.
Markets also see it and reduction of the interest rate has already been included in the future risks.