US Federal Reserve
The US Federal Reserve has left its benchmark federal funds rate unchanged in the range of 5.25% to 5.5%. This was the fifth consecutive meeting where interest rates were held steady. However, the central bank now expects just three rate cuts before 2025, down from the initial four that were projected. Officials need more data to boost their confidence that inflation is moving towards the 2% target before they take action to cut interest rates. In addition, the Federal Reserve intends to reduce its balance sheet by as much as US$95 billion per month. With the central bank in no hurry to cut rates until they obtain affirmation that inflation is declining, traders have pencilled in a possible rate cut happening only in June. This plan, also known as the “dot plot”, is still subject to change depending on incoming data, with nothing written in stone for now....Welcome to this week’s edition of top stock market highlights.
