As such, there might not be too much to scrutinise by the end of the day. But we'll see if there are any surprises.
The dot plot projections though will be fairly more interesting. However, it might not see much change compared to December. Here's what we had the last time:
Now that we have had time to get some idea on tariffs, will the Fed feel more confident in changing up these projections?
There's still much uncertainty regarding Trump's reciprocal tariffs and that will only come in early April. How will that play into inflation and the economy remains to be seen. So, it would be prudent to adopt a more patient approach still.
As for inflation itself, it's still very much middling just above the 3% mark. And when you drill down to the core PCE reading, the signs are not great either. Pantheon estimates that February's reading might rise to 0.36% m/m following the CPI and PPI data. But even a reading just above 0.30% will be enough to push it to the quickest pace since March 2024. So, there's something to take note of.
In other words, the communique is going to lean towards staying on the sidelines for now. That as they are looking to bide their time in figuring out the economic impact from Trump's policies among other things.
This article was written by Justin Low at www.forexlive.com. Read More Details
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