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Fed announces plans for three cuts in 2024 and encourages investors

Written by Paulo Nogueira
Published 14/12/2023 às 07:47
Federal Reserve
Markets liked what they saw on Super Wednesday. Starting with the Federal Reserve, the decision to maintain interest rates was already priced in. However, the – All rights: MoneyTimes

Markets react positively to Super Wednesday with the Federal Reserve's decision to maintain interest rates and the favorable performance of international stock exchanges.

The euphoria due to the excitement with the Fed was such that the Ibovespa (IBOV) soared again, almost reaching the 130 thousand points mark. Markets reacted positively to the Federal Reserve's decision, which maintained interest rates as expected, but surprised with optimistic projections for 2024. Most Fed leaders project at least three interest rate cuts over the next year. Furthermore, President Jerome Powell celebrated the slowdown in inflation, but warned that prices still remain high. 'Inflation is still too high. Continued progress in reducing it is not guaranteed and the path forward is uncertain,' he said. in his speech.

The market reaction to the Federal Reserve's decision was significant, with the Ibovespa (IBOV) closing up 2,42% at 129.465,08 points. In addition, investors also celebrated the 0,50 percentage point cut in the Selic, as well as the announcements from the Monetary Policy Committee (Copom) about new cuts of similar magnitude. And central bank decisions don't stop there, with meetings of the Bank of England and the European Central Bank scheduled for today, while international stock markets are trading higher this morning.

Fed maintains maintenance decision and analyzes impact on markets

The Federal Reserve decided to keep the interest rate unchanged, reflecting its concern about the inflation and the impact on international markets and stock exchanges. The recent pressure on the central bank to a court was responded to with the maintenance decision, which generated expectations in the markets and in the behavior of commodities. Although some analysts predicted a cut, the Fed chose to maintain its current position, reflecting a cautious approach.
The Federal Reserve's decision regarding inflation and the markets had wide repercussions, with investors seeking to understand the impact of this decision on international stock markets and the behavior of commodities. The maintenance decision, along with projections for the remainder of the year, will be closely monitored by investors, who seek insights into the Fed's stance on monetary policy.
The Federal Reserve's emphasis on maintaining interest rates is in line with its cautious approach to markets and inflation. The decision not to make a cut also reflects the Fed's careful assessment of recent economic data. Maintaining the interest rate signals the Federal Reserve's concerns about inflation and its impact on international markets and stock exchanges, as it continues to assess economic risks and projections.

Fed maintains maintenance decision and analyzes impact on markets

The Federal Reserve, once again, decided not to cut the interest rate, opting to maintain its current position. This decision has generated great expectations in the markets and has impacted the behavior of commodities. The Fed's emphasis on the maintenance decision reflects concerns about inflation and its impact on international markets and stock exchanges.
The recent pressure on the Central Bank for a cut was widely discussed, but the Fed chose to maintain its cautious approach to monetary policy. The maintenance decision also sends signals to investors about the Federal Reserve's stance on economic risks and projections, directly impacting the markets and the behavior of commodities.
The decision to maintain the Federal Reserve has led analysts to seek insights into the Fed's next steps in relation to monetary policy, considering projections for the remainder of the year. Concerns about inflation and the impact on markets have been widely discussed, as investors seek to understand the implications of this decision on international stock markets.

Source: moneytimes

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Paulo Nogueira

An electrical engineer graduated from one of the country's technical education institutions, the Instituto Federal Fluminense - IFF (formerly CEFET), I worked for several years in the areas of offshore oil and gas, energy and construction. Today, with over 8 publications in magazines and online blogs about the energy sector, my focus is to provide real-time information on the Brazilian employment market, macro and micro economics and entrepreneurship. For questions, suggestions and corrections, please contact us at informe@clickpetroleoegas.com.br. Please note that we do not accept resumes for this purpose.

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