Ultima MarketsMarket Hot Spots: The Federal Reserve Hints3Monthly interest rate cuts will not occur, stock market...

At the January meeting, the Federal Reserve chose to maintain the federal funds rate at5.25%-5.5%For the fourth consecutive meeting, it remains at23The high level in the past year meets market expectations.

Policy officials say they are hesitant to lower interest rates until inflation levels continue to approach sustainability 2% Only then can we have more confidence. At the press conference, Chairman Powell stated that there may be a rate cut at some point this year, but emphasized that a decision will be made based on each meeting and expressed doubts about the rate cut in March.

Meanwhile, the Federal Reserve removed potential interest rate hikes from its statement, citing an improvement in the balance of risks associated with achieving employment and inflation targets. However, it emphasizes the readiness to adjust monetary policy if emerging risks pose a threat to these goals. The central bank acknowledges that inflation has slightly eased in the past year, but emphasizes that it is still at a relatively high level.

After the interest rate resolution, the US dollar strengthened and rebounded to103.5Above, also in the United States10The yield rate of annual government bonds remains at3.97%Around, hovering at a two-week low. However, selling pressure has hit the stock market. During Wednesday trading hours, the Dow Jones Industrial Average fell0.82%Standard&Poor's500Index decline1.61%The Nasdaq index fell2.23%. All in the S&P index 11 All sectors fell, with communication services, technology, and energy leading the decline.

(Federal Funds Rate)

(Half year chart of the US dollar index)

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