FOMC Preview: Fed Expected to Hold Rates After June Hawkish Shift
The Federal Reserve is expected to maintain its current policy stance following June's hawkish shift, despite recent oil price surges, as June inflation came in below forecasts and labor data softened.
The Federal Reserve is widely expected to keep interest rates unchanged at the upcoming FOMC meeting, following a more hawkish pivot in June. Recent developments, including a surge in oil prices, initially raised expectations of a rate hike. However, June's inflation figures came in well below forecasts, and labour market data also disappointed.
These softer economic readings suggest the Fed will hold its current policy stance, waiting for more clarity. Market participants are now pricing in a steady rate path for the near term.
Source: FXStreet Forex News