{"id":60591,"date":"2023-02-01T14:35:33","date_gmt":"2023-02-01T03:35:33","guid":{"rendered":"https:\/\/www.icmarkets.com\/blog\/?p=60591"},"modified":"2023-02-03T11:19:21","modified_gmt":"2023-02-03T00:19:21","slug":"all-eyes-on-fomc-what-to-expect","status":"publish","type":"post","link":"https:\/\/www.icmarkets.com\/blog\/all-eyes-on-fomc-what-to-expect\/","title":{"rendered":"All Eyes on FOMC – What to expect?"},"content":{"rendered":"\n

The Fed is widely expected to increase interest rates by 25 bps<\/strong>, the second phase of a slowing pace in rate hikes since previous announcements. However, of more importance is the tone that Fed Chair Powell exudes amid the FOMC meeting<\/strong> that traders will closely monitor.<\/p>\n\n\n\n

As markets continue to phase out the \u201cdon\u2019t fight the Fed\u201d <\/em>perception, the price of gold has predominantly already priced in a 25 bps rate hike and a pause in the March meeting is anticipated by many. Would this lead to a short-term pull-back for the gold prices? The surprise would be a higher rate and hawkish remarks.<\/p>\n\n\n\n

Fed Chair Jerome Powell commented himself in previous meetings, quoting Milton Friedman, in that monetary policy works with long and variable lags, he has continually pushed back against market expectations, emphasizing that rate will remain higher for longer until inflation has eased meaningfully towards the 2% target. Will the Fed claim victory anytime sooner? Or will there be a claim.<\/p>\n\n\n\n

We will find out more clues as we head into this key event amongst a week full of market headlines. <\/p>\n\n\n\n

Key takeaways from today\u2019s FOMC Feb 2023 Decision<\/h2>\n\n\n\n

We\u2019ve been following the Federal Reserve\u2019s interest rate decision very closely and here are the key takeaways from their statement:<\/p>\n\n\n\n