Fed Rate Cut, Federal Reserve Meeting Time, Federal Reserve Meeting Outcome: The most anticipated event of the financial calendar is set to unfold on September 17 and 18, 2024 – the Federal Reserve Meeting. The outcome of this meeting, expected around 11:30 PM IST on September 18, will have a significant impact on global markets, especially gold and silver prices, with Indian markets reacting on September 19.
The world is keenly waiting for the Federal Reserve’s decision, with discussions around a potential rate cut heating up. Analysts are divided on the magnitude of the cut, with some forecasting a 0.25% reduction, while others predict a 0.5% cut.
US Federal Reserve Meeting Schedule, time and outcome expectation:
Date: September 17-18, 2024
Outcome Announcement: September 18, 11:30 PM IST
US Fed Press Conference: September 18, 12:00 AM IST
Current US Interest Rate: 5.5%
Expected Rate Cut: 0.25% or 0.5%
The CME FedWatch Tool currently reflects a 50/50 split among market participants, with half expecting a 0.25% cut and the other half favoring a 0.5% reduction. Any decision by the Federal Reserve could influence financial markets globally, particularly in the equity and commodities sectors. If a rate cut is announced, it could signal the beginning of a new rate-cutting cycle.
Inflation appears to be under control and within the target range, leaving the Fed’s primary focus now on the job market. Market experts globally are expecting a larger rate cut, which has contributed to a surge in gold prices. Gold futures on COMEX have hit an all-time high, crossing the $2,600 mark, while spot gold prices have surpassed $2,575. However, some caution that if a larger cut does not materialize, gold prices may face a negative reaction.
Concerns surrounding a potential debt crisis in the US, coupled with the upcoming presidential elections featuring Donald Trump and Kamala Harris, add to the event’s significance. The Federal Reserve’s decision will likely have lasting implications on the global financial landscape. Meanwhile, the European Central Bank (ECB) has already initiated two rate cuts, further increasing anticipation for the Federal Reserve’s move.
Other Key Events of the Week:
Monday, September 16, 2024:
6:00 PM: US NY Empire State Manufacturing Index (SEP)
Tuesday, September 17, 2024:
6:00 PM: US Retail Sales MoM & YoY (AUG)
6:45 PM: US Industrial and Manufacturing Production (AUG)
Wednesday, September 18, 2024:
6:00 PM: US Building Permits Prelim (AUG)
Thursday, September 19, 2024:
Impact on Indian markets expected
6:00 PM: US Initial Jobless Claims (SEP 14)
7:30 PM: US Existing Home Sales (AUG)
Friday, September 20, 2024:
11:30 PM: US Fed Harker Speech
Other Events to Watch:
Geopolitical Tensions
US Elections
SMC Global in its weekly report stated:
“Fed Chair Jerome Powell has hinted at a possible rate-cutting cycle, and markets expect a rate reduction at the FOMC meeting on September 18. On Comex, gold has broken out of a long consolidation phase, with analysts forecasting prices between $2,490 and $2,640. Silver is expected to trade between $28.90 and $32.40. On MCX, gold may continue its bullish trend, with support around ₹70,900 and resistance at ₹74,400, while silver could trade between ₹84,800 and ₹90,000.”
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