On the heels of Decembers rate hike, expectations for the first Trump Era Federal Reserve meeting is to leave rates unchanged. With steady economic growth and a strong labor market, both prime conditions for additional rate hikes, Yellen has hinted at a short-term holding pattern until the Trump Administration paints a clearer picture of its forthcoming fiscal policies surrounding tax reforms and budgetary policies.
According to the CME FedWatch Tool, the futures industry puts the odds of a rake at 4%.
Today’s meeting should draw the interests of both economists and the media alike as Trump had been fairly critical of both the Fed and Yellen on the campaign trail. With rumblings of the Trump Administration considering abolishing the Fed, Yellen will likely stay politically agnostic in her delivery.
The next two interest rate decisions fall on March 15 and May 3. Bookmark the NinjaTrader Trade Desk Calendar as your one-stop-shop for economic events, roll date notification, holiday trading hours & more!