On June 12, the Federal Open Market Committee (FOMC) held a meeting that drew significant attention from investors worldwide, particularly on the interest rate movement. The Federal Reserve (Fed) has held interest rates steady at their current range of 5.25% to 5.5% and revised its outlook for rate cuts to just one in 2024. Federal Reserve Chair Jerome Powell stated at the press conference that the central bank still needs to be more confident in lower rates despite inflation having decreased from its peak levels. In this article, we will explore the factors influencing the Fed’s decision towards interest rates and examine the potential impacts of rate cuts on the U.S. and regional markets (Singapore and Malaysia).
