The minutes from the Federal Reserve's September meeting are set to be unveiled this Thursday at 2:00 AM UTC+8, as reported by financial analysts. SEB, a prominent Swedish bank, points out that alongside discussions on potential rate cuts, the Federal Reserve will also present new economic forecasts that are pivotal for investors and policy-makers alike.
According to these updated forecasts, the U.S. economy is anticipated to achieve a soft landing by 2026, projecting an economic growth rate of approximately 2% and inflation rates that are expected to approach the central bank's target levels. Market participants are particularly focused on the interest rate predictions which suggest the possibility of two 25 basis point cuts before the end of the current year, followed by a significant 100 basis point reduction anticipated in 2025.
These forthcoming minutes are expected to shed light on the Federal Reserve's perspective regarding the pace of future rate cuts and the external economic factors that could catalyze a swift reduction. Notably, as the cycle of rate cutting has already commenced, the minutes will also delve into discussions surrounding long-term interest rates.
Investors are keenly interested in understanding when these rates are expected to stabilize and at what levels they might eventually bottom out. Therefore, the release of the minutes is anticipated to provide valuable insights and could influence market dynamics in the short and long terms..