Fed’s March meeting; what Wall Street analysts anticipate Powell to say
The usual two-day meeting of the U.S. Federal Reserve is scheduled to end on Wednesday. The market is gradually factoring in the possibility of a 25 basis point Fed rate increase. Yet, given the threats to financial stability posed by the ongoing global banking crisis, the Fed is expected to move towards a modest rate hike. Before to this, bets were put on the 50bps rate increase due to the continued strength of the jobs and inflation data. While there is discussion on whether to use zero or 25 basis points, JPMorgan desk analysts stated in their morning briefing note that they were still waiting for word on whether the Fed, Treasury, and FDIC will expand the scope of their response or introduce new measures. Here is what the top economists on Wall Street anticipate the Fed will do tomorrow: Analysts at Deutsche Bank Analysts at Deutsche Bank: “During the FOMC meeting on Wednesday, we anticipate the Fed will announce a 25 bp rate increase. The result of the meeting, however, will rely on news…
