The Federal Reserve System, or Federal Reserve, is a privately owned bank in the United States, which is responsible for fulfilling the responsibilities of the largest bank in the United States, including formulating monetary policy and supervising financial institutions in the United States. The current top head of the Federal Reserve is Jerome Powell.
On February 1, 2024, the Federal Reserve decided to keep interest rates unchanged at its latest meeting, and the target range for the Federal** interest rate remained at 525% to 55%[2][4][6]。Although there was no rate cut at this meeting, the market ** the probability of a rate cut by the Fed at its May meeting is 90%[2].
The U.S. economy is in good shape, expanding steadily, and the labor market remains strong, and there is no need for a sharp rate cut as previously expected. Maintaining the current restrictive interest rate policy will exert some downward pressure on economic activity and inflation[1][5]. While there are some signs of weakness, the overall economic situation is stable, and the Fed is focusing on inflation risks and gradually lowering interest rates[9][8].
Compared with the previous meeting, the statement of this meeting has been softened and the attitude towards interest rate cuts is more open, and there is no mention of the tightening of financial and credit conditions[2][7][9]. The statement shows the Fed's commitment to achieving a 2% inflation rate[2].
In addition, interest rate swap market data shows that the Fed plans to cut interest rates by 140 basis points in 2024[10]. While it remains to be seen the exact timing and magnitude of interest rate cuts, the Fed is widely expected to adjust its monetary policy in the future to support stable economic growth[10]. Movie commentary