The Federal Reserve is expected to maintain the current interest rates at the end of its two-day policy meeting on Wednesday. The market’s focus is transitioning towards anticipating the number of rate cuts officials might indicate for the remainder of 2024.
Despite May’s employment data revealing accelerated job and wage growth along with a higher unemployment rate, recent Fed statements suggest no rush to cut rates due to persistent inflation and a solid growth outlook.
May’s inflation figures are set to be released just hours before the Fed’s statement on Wednesday.
In the U.K., market participants are awaiting Tuesday’s jobs report to determine if wage pressures are easing sufficiently for a potential rate cut by the Bank of England. Additionally, April’s GDP data, due for release on Wednesday, is expected to reveal a slowdown in growth following a strong 0.6% expansion in Q1.
